Bank Unions Oppose Vinod Rai's Proposal For Performance-Linked Pay

New Delhi: Bank employees unions have expressed their stiff opposition to any move to introduce performance linked incentive for public sector banks proposed by Banks Board Bureau (BBB) chief Vinod Rai.
 
This will be a prelude to introduce differential pay as also the concept of Cost to Company at a later stage, All India Bank Officers' Confederation (AIBOC) said in a statement.

"Setting performance parameters at various levels of banking functions does not fit well into the banking environment as there are multiple functions for a few and specialist functions for another lot," AIBOC General Secretary Harvinder Singh said.

Moreover, he said, such parameters may not work well with the functionaries in controlling offices who undertake jobs of evolving and implementing policies and guidelines at the back office.

The unilateral introduction of such practices are aimed at bypassing the bipartite machinery and casting employees against their own colleagues, he added.

Earlier this month, BBB has said it is thinking of the fact that the compensation package across the board of public sector banks needs to be improved.

"Maybe, we are not able to do much with the fixed part of compensation package but variable part we are hopeful that in the next financial year we will be able to introduce a far more attractive package which do have bonuses, ESOPs and other performance linked incentives as part of the package," Rai had said.

National Organisation of Bank Workers vice president Ashwini Rana said there are certain jobs in banks whose tangible gain cannot be measured especially assisting staff.

So, the introduction of performance linked incentive will lead to inequality, favouritism and discrimination, Rana said, adding it may turn counter productive.

AIBOC demands, instead, to finalise a better and satisfactory wage packet which has to be superior to 7th Pay Commission through the bipartite machinery already in force, in the best interests of the banks and the economy.

So, far the wage revision negotiation were covered through all member banks in the country public sector as well as the old generation private sector.

"There are attempts on the part of a few in the government, IBA as well as the recently constituted BBB to pursue bank level settlement. AIBOC is strongly opposed to this anti-labour and de-unionisation move," it said.

Wage revision for bank employees is due from November this year.

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