Bank Union Challenges New Incentive Directive

The United Forum of Bank Unions (UFBU) objected to a directive by the Department of Financial Services, urging public sector banks to provide Performance Linked Incentive (PLI) from Scale IV officers upwards. UFBU demanded a review, arguing that the directive undermines ongoing negotiations in conciliation meetings.

The United Forum of Bank Unions (UFBU) has voiced strong opposition to a recent directive issued by the Department of Financial Services (DFS), advising public sector banks to implement Performance Linked Incentives (PLI) for officers from Scale IV upwards.

Released on Wednesday, the directive calls for immediate implementation, sparking UFBU's demand for abeyance until consultative procedures are concluded. UFBU stated that the directive is premature, considering that PLI matters are under active negotiation in conciliation proceedings with the Chief Labour Commissioner (Central).

UFBU warns that executing the directive might escalate unrest within the banking sector. The forum insists that the department collaborates with unions and managers to ensure existing agreements remain intact. The proposal introduces significant financial changes and shifts the performance incentive structure, raising concerns over prudence and governance in the banking community.

(With inputs from agencies.)