Wage revision - could it be the last one on industry level?

IBA has finally called the constituents of UFBU for a first/formal meeting on wage negotiations on 2nd May 2017. This has has happened after a series of communications to the banks and trade unions urging them to take up the matter in right earnest. Government was more eager and enthusiastic than the associations and the unions to finish the wage revision exercise. It sounds rather strange. Never in the history of banking wage negotiations that government was proactive, forthcoming and so much interested to finish the job.

This should rise the eyebrows of the trade unions and the members alike. This gives rise to a kind of apprehension as to what could be in store for them and why the government is so much interested in early settlement. There is a kind of uneasiness in the trade union circles about the urgency of the government. Is there a method in this madness? Only time will answer. Is there a sting in the tail?. All needs to be watched.

Yes. There must be a method in this madness. The recent circular in SBI which talks about fixed and variable pay for Scale IV and above is a pointer to the things that are in store in the wage settlement. By this one circular, it appears, if the government/IBA has achieved a clear and vertical division in the membership ie., one group upto scale III and another group scale IV and above. Since their interests are divided, it may become difficult for the trade unions to bring both the blocks under one umbrella for agitational action if at all they contemplate and act upon when need arises. There may be more surprises and shocks in the bag. Here, how well trade unions post merger, will act as a cohesive, consolidated and a united block assumes importance and will have a bearing on the wage revision.

The process of merger in SBI has just begun and it may take considerably long time to settle down. And there is a talk of taking up some more banks to be merged among themselves. In all probability the government will achieve its stated goal of having 5-6 large banks instead of many small banks in a few years from now. Once it achieve this goal, government may embark upon a more lethal, dangerous and difficult to imagine move of bringing down its stake below 50% ie., PRIVITISATION which we all abhor. This could be the last nail in the coffin.

The introduction of the variable pay, monetization of perks and allowances are all directed to move towards the concept called CTC (cost to company) which is in vogue in private companies and banks. The only ray of hope is - will the government let go of advantage of such a huge, well networked and powerful pan India instrument called State Bank to implement its schemes by privatization. This is the only silver lining for State Bank of India.

All these thoughts are only on imagination and not on the basis of any evidence or facts. It's assessed on the basis of the way things are happening and one action necessarily leads to a next step.

K.N.Krishnan,    94496 12446