The Hindu Business Line : IBA, bank unions sign pact to set timeframe to resolve issues

Mumbai, Feb. 25 The proposed two-day bank strike was called off on Monday after the representatives of bank management and unions agreed to set a timeframe for resolving the contentious issues.

The Indian Banks’ Association and office-bearers of the nine bank unions held discussions from Sunday night till early Monday morning and finally the unions decided to call off the strike.

A memorandum of understanding was signed in Mumbai on Monday, according to which both the parties will meet again on March 3 to draw up the schedule.

Strike called off

Following the signing of the MoU, the unions have also called off the proposed indefinite strike in March.

The United Forum of Bank Unions (UFBU), an umbrella organisation of nine unions, represents about one million employees belonging to public sector banks and old generation private banks.

Union demands

The demands of the bank unions include no mergers between public sector banks, no outsourcing of core banking jobs, one more round of option to join the pension scheme, appointments on compassionate grounds, recruitment to fill up all unfilled vacancies and early settlement of wage revision.

While earlier there was no time frame for resolving issues, now IBA has agreed to set a schedule for the same. IBA and unions will take up the issues depending on their gravity and complexity, said Mr C.H. Venkatachalam, Convenor, UFBU.

This is the first time that a bank strike has been called off before an agreement has been signed, said Mr M.B.N. Rao, Chairman, IBA.

Pension costs

With respect to the demand for another round of pension option, there is a wide disparity in the additional cost to the banking system, as calculated by the unions and IBA.

According to IBA, the additional cost will be around Rs 26,000 crore, while the unions are pegging the cost at around Rs 4,700 crore. The two parties will once again try to work out the cost jointly.