Employees at public sector banks (PSBs) may see a 15%-20% pay increase and the implementation of a five-day work week by the middle of December, according to four people familiar with the situation. The 12th bipartite settlement talks between bank unions and associations and the Indian Banks' Association (IBA) have entered the final stage, according to four people familiar with the situation.
"This is the first time in negotiation history that the offer (for wage increase) begins with 15%." The wage increase will most likely be between 15% and 20%, according to IBA sources. They also stated that the announcement of the five-day work week will be made either concurrently with or immediately following the notice of salary increases by the Centre or the IBA.
PSB employees' current salary agreement will end on November 1, 2022. Since then, the IBA and the unions representing bank employees have been negotiating a new wage deal. According to a finance ministry source, the pay revision and change in work days will also apply to regional rural banks.
In July 2020, the IBA and the United Forum of Bank Unions signed a memorandum of understanding to settle the three-year-long contentious issue of wage revision, with the IBA and the bank unions signing a memorandum of understanding. Another source involved in the negotiation process said the IBA and the bank unions will soon have a final meeting where the two parties will sign a memorandum of understanding, which will then be sent to the finance minister.
"The salary increase will be around 15%." "We are negotiating aggressively because the PSU banks must take a final hit on their balance sheets," sources added. The finance ministry initially requested that public sector lenders finish negotiations by December
Because of the commencement of the five-day work week, branches will be closed on weekends. Employees may be compelled to work longer hours throughout the week to compensate for missing working hours, according to the first source cited above.
"Business hours will start early on weekdays and close 30-45 minutes late than the current working hours," they added. Customers who want to withdraw or transfer cash can do so through automated teller machines, with the only challenge being the deposit of cheques.
"Cheque collection will be impacted for these two days." "I believe we should be prepared for that because it makes no significant difference and the use of cheques is decreasing as people opt for digital banking services," one insider said.
With employees at insurance firms, state governments, and the federal government working on a five-day week, providing the same choice to bankers is a step in the right direction, according to sources. Closing branches would also result in savings in terms of transport fuel and energy. "The inconvenience to customers is more than offset by savings and other factors." Employees require more family time as well," they stated.
