GOOD news for tens of millions of employees of the public sector banks. According to a media report a proposal is likely to be considered to bring them under the purview of the Seventh Pay Commission, which has already been constituted. Even after several rounds...of talks between bank employee unions and the Indian Banks Association (IBA), there seems to be no consensus on the quantum of salary hike for over 800,000 employees at different public sector lenders.
While the IBA has indicated that the maximum hike that can be offered to employees is about 11 percent, unions are demanding a 25 percent raise.
The salary revision of bank employees is due since November 2012.
The bank unions have threatened to go on a strike on November 12 demanding a raise in salaries.
There could even be an indefinite strike thereafter if the issue is not addressed, union representatives said.
A senior bank executive said the issue of wage settlement would have to be sorted at the earliest and the finance ministry could intervene to ensure that the deadlock comes to an end.
“At a time, when the Pradhan Mantri Jan Dhan Yojana is underway and targets have to be met, there is little scope to lose time,” he said.The previous UPA (United Progressive Alliance) government constituted the Seventh Central Pay Commission. To be headed by Ashok Kumar Mathur, a retired Supreme Court judge and retired chairman of Armed Forces Tribunal, the commission will revise the salary structure of five million central government employees, including those in defence and railways and about three million pensioners. While the constitution of the commission promises significant increases in pay for government employees, it may significantly increase the fiscal burden of the central and state governments. The implementation of the Sixth Pay Commission increased salaries by 21 percent resulting in an additional annual burden of nearly Rs 18,000 crore for the Union government, besides a pay out of arrears of Rs 30,000 crore. The next set of recommendations is likely to be implemented from January 1, 2016. The announcement also raises hopes for tens of millions of salaried PSU employees.