Saturday, April 24, 2010

Wage Settlement in Indian Banking Industry

After much dilly dallying the wage negotiation in Banking Industry is likely to be completed shortly; as reported by the Trade Unions engaged in negotiation. What seems with elections in different states closing in, their political bosses have shown them green signal! Reason? you must know what follows in every industry after wage negotiation in the Nationalized sectors in our country, a good percentage of the arrears (the accumulated amount of the balance of the difference between enhanced wage and existing wage, since the effective date of settlement)is taken away from every employee (of course who are members of these unions) as levy. This makes a handsome fund in the hand of these Trade Unions; a chunk from that is doled out to their respective political parties. So it makes sense to hasten the wage settlement.

Imagine; that it is almost two and half years now the settlement is on; in between Bank employees have gone on strikes number of times; leaving the customers to suffer. Nothing could hasten the process of negotiation till the election knocked the doors! Remember, Alexander the great commented on this country centuries ago to Celucas,his General, standing on the other side of Indus river " see how great(unique!) the country is!". So it is in every way. Here every decision is taken politically, be it reservation , wage negotiation or anything you can imagine on earth.
But what is the outcome of such prolonged negotiation? Well, the pension issue of the Bank employees appears to have been resolved, with the pension fund to be created with partial subscription of the employees. Mind you this has never happened so far with any Government undertaking sector. So this is land mark settlement. Last time when Bank employees were offered pension options, it was just like another options. The Reserve Bank employees were given this options number of times. Our MPs and MLAs fix their own pension doling out the public funds. Where as these Banks, most of them are laying golden eggs are asked to create pension funds with suitable contribution from their employees.
Any way this one part of the story; the other part is, after the settlement what will the average wage of bank employees in comparison to other sectors? See even after the new wage, a clerk in bank at the time of joining will get a salary between Rs7500/- to Rs8500/-(approx) PM, depending upon the place of posting. As in metros they get more city compensatory allowance and house rent. Sounds funny! but it fact and that is why it is observed those who are joining the industry leave it sooner they get any other jobs even in Municipalities as they are far better pay masters. Obviously, this will help the bankers to take steps ahead quite smoothly towards outsourcing, as the industry is likely to starve for work force

Those of you are feeling happy about the affair, keeping the banking stocks price in mind beware. The result of running financial institutions, specially banks have been tasted in recent US sub-prime crises followed by global recession. After all you can never expect the mercenaries would fight for your nation the way soldiers do.

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