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Thursday, August 13, 2020

IBA Letter to UFBU dated 13.08.2020 regarding formation of Working Group for 11th BPS finalization

IBA invited UFBU on 22.07.2020 for a meeting on 11th Bipartite Settlement. An MOU was signed by UFBU and IBA after reaching a common understanding. In this meeting UFBU accepted a meager 2.50% load on basic and settled the wage with 15% overall rise in payslip component. However this was far below the expectation of banker and we, the bankers still feeling cheated. Bankers have raised their disapproval regarding the MOU signed on 22.07.2020 under the leadership of Bank Employee's Federation of India (BEFI) and demanding IBA and Government to accept their legitimate demands of 5 days working week, merger of Special Pay with Basic pay as per court order, scrap of NPS, improvement in pension etc. 


But today, on 13th August 2020, IBA issued one letter to UFBU and proposed the formation of working group for further distributing the 12.50% of hike in payslip component. UFBU to nominate one representative each from 8 officer's/workmen union (except BEFI) in order to formulate the working group. 


Here it is worth mentioning that BEFI has not signed the above MOU on 22.07.2020. BEFI clearly opposed the MOU and put forth the legitimate demands of bankers which are not at all considered in the MOU. Later on some other Union and Association also opposed the MOU. Now IBA has clearly mentioned in his letter that BEFI representative will not be a part of working group. 


After this letter of IBA it looks like that Bankers legitimate demands are not yet considered or heared. Now rest of the Union/Associations who have already opposed the MOU will decide weather bankers will get a respectable wage revision in 11th BPS??  


Let us hope for the Best!!

 We reproduced the IBA letter dated 13.08.2020 regarding the formation of working group for the ready reference of our readers:




HR & Industrial Relations




August 13, 2020


Shri Sanjeev K Bandlish, Convenor, UFBU 

United Forum of Bank Unions

C/o State Bank of India, LHO, Plot no. 1, Sector -17A

Chandigarh -160017


Dear Sir,


Sub : Formation of Working Groups consequent to the signing of MoU dated 22nd July 2020


Consequent upon the signing of the above dated MoU, between the IBA representing management of banks and Workmen Unions/ Officer Associations, we wish to re-iterate the below details: -


The agreed total increase in establishment expenses as per MoU is RS. 7898 Crores. The total increase in Basic Pay & merged DA is capped at 2.50 %, the remaining amount i.e. 12.50 % (15 %-2.5 %) needs to be distributed amongst other remaining pay-slip components. (such as HRA, CCA, Annual Medical Aid, etc) for both Workmen & Officers, so that the overall cost does not cross Rs. 7898 Crores.


2.  As the next task for us to carry the matter further, is distribution of the corpus amongst other remaining pay-slip components for both Workmen & Officers separately, it has been decided to form two working groups, one for Officers and other, for Workmen.


3.  The Groups, under the chairmanship of the below, are entrusted to distribute the corpus allotted for the Officers/Workmen amongst other remaining pay-slip components and working out other issues, if any, after discussion and agreement of Officers /Workmen Associations.


i.          Chairman of the Working Group for Officers -Shri Alok Kumar Choudhary


ii.          Chairman of the Working Group for Workmen - Shri Rakesh Sharma, MD & CEO, IDBI



3.   In this connection, we request you to please provide us name of 1 representative from each Workmen Union (except BEFI, as they have not signed the MOU) and Officers Association, to form part of the said Working groups.


4.  Please provide the nominations at the earliest.


Yours faithfully,

S K Kakkar

Senior Advisor (HR&IR)



Edit: Actual Letter




References: IBA Letter dated 13.08.2020

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