Debate Over Revised Incentives Sparks Tensions in Banking Sector

The AIBOC opposes the revised Performance Linked Incentives for senior bank executives, arguing it infringes on public bank boards' autonomy and excludes most of the workforce. The union urges respect for existing agreements and warns against governmental interference undermining bank governance and strategic decision-making.

The All India Bank Officers' Confederation (AIBOC) has raised concerns over the revised Performance Linked Incentives (PLI) scheme announced by the Department of Financial Services for senior banking executives and Whole Time Directors.

The union argues that the directive undermines established agreements and collective bargaining frameworks that have been in place for officers up to Scale VII, which were collaboratively decided with the Indian Banks' Association (IBA).

AIBOC cautions that governmental micro-management could hinder banks' autonomy and strategic decision-making, urging the department to entrust compensation design to banks and the IBA in partnership with unions for equitable growth.

(With inputs from agencies.)