The United Forum of Bank Unions (UFBU), which represents multiple banking unions, held a meeting with the Indian Banks’ Association (IBA) to discuss several important issues related to bank employees, including recruitment, pension updates, medical insurance, and the demand for five-day banking.
The meeting was attended by IBA officials, including Mr. Gopal Murli Bhagat (Deputy Chief Executive), Mr. Brajeshwar Sharma (Senior Advisor, HR & IR), and HR heads from major banks such as SBI, Bank of India, Bank of Baroda, Union Bank of India, and Central Bank of India. The UFBU was represented by leaders from its constituent unions.
New Leadership at IBA
Mr. A K Goel, former MD of Punjab National Bank (PNB), has taken charge as the new Chief Executive of IBA. The UFBU welcomed him and expressed hope that he would take necessary steps to resolve the long-pending issues of bank employees. The union particularly emphasized the demand for a five-day workweek and the urgent need for recruitment in banks. Mr. Goel assured that employee welfare is a priority and that efforts will be made to address the concerns raised by the unions.
Demand for More Recruitment in Banks
One of the key concerns raised by the UFBU was the shortage of staff in bank branches. The unions highlighted that due to increasing retirements and resignations, the existing workforce is under extreme pressure. They pointed out that many officers are being forced to handle clerical duties due to staff shortages, affecting their ability to perform their primary responsibilities.
Additionally, the unions raised concerns over the lack of recruitment for sub-staff and housekeepers. Many of these roles are being filled by temporary or casual workers, which the unions argue is not a sustainable or fair practice. They demanded that all existing vacancies be filled and that preference be given to temporary employees when making permanent appointments.
The IBA responded by stating that each bank follows its own recruitment policy and that the matter would be discussed with the member banks. However, the unions insisted that the government, as the major stakeholder in public sector banks, should intervene and direct banks to ensure adequate staffing.
Proposal for a Leave Bank System
The IBA and UFBU discussed the introduction of a Leave Bank system, which would allow employees to donate their leave days to a common pool. This leave could then be used by employees who have exhausted their leave but require additional time off for medical treatment or other critical needs. The unions welcomed this proposal and agreed to work on finalizing the scheme soon.
Group Medical Insurance for Bank Employees and Retirees
The unions demanded that banks bear the cost of medical insurance premiums for retired employees. However, the IBA stated that this issue requires further discussion due to financial constraints.
The unions also proposed improvements in the existing Group Medical Insurance Scheme, such as increasing coverage amounts. It was decided that these discussions would continue at the time of the scheme’s renewal.
Pension Updates and Ex-Gratia Payments
The UFBU raised multiple demands related to pensioners, including:
- Upgradation of pension: The IBA informed the unions that this issue is currently under legal review.
- Increase in ex-gratia payments: The unions demanded a revision of the ex-gratia amount for pensioners. The IBA responded that this could be considered after the end of the current financial year.
- Special allowance for superannuation benefits: The unions requested that special allowances be included in pension calculations. However, the IBA stated that legal proceedings on this matter are still pending.
Additionally, the unions pointed out that some private sector banks have not implemented ex-gratia payments for retirees. The IBA agreed to remind these banks about their obligation.
Improvements in Pension System
The UFBU proposed several improvements to the current pension system, including:
- Full pension after 20 years of service instead of the current requirement.
- Pension calculation based on the last month’s salary or the last 10 months’ average, whichever is higher.
- Additional pension benefits for retirees above 70, 80, and 90 years of age.
- A minimum pension of Rs. 10,000.
The IBA requested a detailed note from the unions on these suggestions for further review.
Changes in Disciplinary Action Procedures
The UFBU proposed modifications to the disciplinary action procedures for workmen, based on discussions that had already taken place in a sub-committee. The IBA agreed to follow up on this matter with the Negotiating Committee.
For officers, the IBA and UFBU agreed to form a smaller committee to discuss possible changes in disciplinary procedures.
Uniform DA Formula for Pensioners
The unions demanded a uniform Dearness Allowance (DA) formula for all pensioners, regardless of when they retired. The IBA indicated that they were open to considering this proposal, provided it does not impose additional financial burdens on banks. The UFBU was asked to submit a detailed proposal on this matter.
Compassionate Appointments in Banks
The unions raised concerns about the current 5% cap on compassionate appointments, which restricts the number of family members of deceased employees who can be hired. They suggested that this limit should be based on total vacancies rather than actual recruitments, so that pending cases can be processed more efficiently.
The unions also pointed out that pension payments made through annuity schemes are not at par with government pensions and need to be reviewed for improvement.
Leave Fare Concession (LFC) for Employees
The UFBU requested improvements in the Leave Fare Concession (LFC) scheme. The IBA agreed to continue discussions on this matter in future meetings.
Conciliation Meeting on March 18, 2025
The UFBU has given a strike notice regarding key demands such as:
- Introduction of a five-day banking week.
- Option to switch from the National Pension System (NPS) to the Old Pension Scheme (OPS).
In response, the Chief Labour Commissioner (CLC) has scheduled a conciliation meeting in Delhi on March 18, 2025, where these issues will be discussed further. The outcome of this meeting will determine the next course of action by the bank unions.
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