The All India Bank Employees Association (AIBEA) on 22 November wrote a letter to government saying the selective approach to incentivise only officers from Scale IV to VIII (counting less than 5% of the total workforce), while excluding over 95% of employees who primarily drive business at the field level, is inequitable.
“It risks fragmentation of the workforce and impairing the collective growth and harmony, which is paramount and essential for any organizational growth and sustainable success,” C H Venkatachalam, General secretary of AIBEA said in the letter.
The letter is in the backdrop of government notification dated 19th November 2024 regarding the revised scheme for Performance Linked Incentives (PLI) for Whole Time Directors, which also extends to officers from Scale IV to Scale VIII.
The directive to the State Bank of India and the Nationalized Banks, to formulate board-approved policies under the framework of this scheme has raised significant concerns, the letter says.
The Performance Linked Incentive for employees (clerical and subordinate staff) and officers (Scale I to Scale VII) has already been determined and settled through bilateral agreements between the Indian Banks’ Association (IBA) and United Forum of Bank Unions consisting of all Employees Unions and Officers Associations at the industry level, said the letter.
These agreements, based on mandates provided by member banks’ boards, also encompass officers in Scale VIII. The DFS directive undermines this well-established framework, violating the sanctity of collective bargaining and the bilateral settlements, letter said.