The Indian Banks’ Association (IBA) has finalised the 8th bipartite wage settlement in the banking industry on Friday. The details of the negotiation was finalised at a meeting between IBA and United Forum of Banking Unions (UFBU). UFBU is an umbrella organisation of nine officers and staff associations operating in the banking industry.
Sources in IBA said that the association has agreed to pay pension at 50% of the last basic pay to employees. IBA has also agreed to pay pension at the same rate to officers and staff who retired during the the 7th bipartite negotiation tenure. However, they will get the pension only from the prospective date and hence will not be entitled to any arrears.
The final draft of the agreement will be signed between IBA and UFBU on June 2 and before that another bipartite meeting will be held on May 27 to finally examine the clauses of the draft agreement. The 8th bipartite wage negotiation comes to effect from November 1, 2002 and will be effective for five years.