Updates of Today's Bipartite Settlement talks of UFBU with IBA

IBA team was led by IBA Chairman Mr. Rajnish Kumar, who is Chairman of SBI.

The following discussion took place :

1. Revised Offer : The offer for hike in Fixed Pay was enhanced from 12% to 12.25 % on pay slip. This offer is with 2% loading. "In view of overall difficult financial condition of Banks, it is not possible to go beyond this offer," was made clear by IBA. 

2. Special Allowance : Due to extra financial burden IBA refused the Demand for Merger of Spl Allowance with Basic.

3. Five Day Week : IBA flatly refused this Demand raised once again.

4. PL Encashment : At present PL can be encashed (i) on retirement (ii) while availing LFC.

A NEW channel for PL Encashment will be introduced. Employees can encash 5 days' PL every year against available balance.

As special case, those employees having less than 5 years' remaining service, shall be able to encash 7 day PL every year against balance available. 

5. Family Pension : IBA is working on enhancing it. They have accepted that it is not adequate.

6. Pension : For enhancement, cost factor is prohibitive. IBA is working on it. But they have not committed anything in this regard.

7. Performance Linked Incentive (PLI) :

As per suggestions made by Unions IBA came out with Revised Offer as under : 

It is payable on year on year increase in Operating Profit.

(A) If Operating Profit increase is between 5 to 10 %, the Incentive will be 2.75 % which equals 10 days' salary.

(B) if Operating Profit increases by 10 to 15 %, the Incentive will be 3.84 % which equals 14 days' salary.

(C) if Operating Profit increases by 15% & above, Incentive will be 5.75 % which equals 21 days' salary.

(D) For those Banks which could not register NET PROFIT, but it's Operating Profit increase is above 5% : the PLI will be @ 2.75% or 10 Days' salary.