Settlements in the Banking Industry.
Bi-Partite Settlement Dated 19.10.1966
collective bargaining in the industries took deep roots in the country and this resulted in the bilateral relationship between
management and the union as an alternative to compulsory adjudication by the tribunals.
The Government of India encouraged employers represented by Indian Banks’ Association and
employees represented by All India Bank Employees Association and the All India Bank Employees Federation to have direct talks
and arrive at a settlement. The first settlement was signed on 19th October 1966 which was hailed as a historical
landmark for the development of bilateral relationship in banking industry and this was in force for a period of 3 years till
Second Bi-Partite Settlement Dated 12.10.1970
The Second Bi-Partite Settlement was signed on 12.10.1979 between AIBEA represent majority of the
bank employees and the IBA representing the employers. This was in operation for 3 years till 31.12.1973.
Third Bi-Partite Settlement Dated 1.9.1978
Though the Second Bi-Partite Settlement came to an end on 31.12.1973 an emergency was proclaimed in India in 1974 and
hence negotiations would not take place during the time of emergency. In 1977 the emergency was lifted and the Third Bi-Partite
talks were resumed. This time the State Bank of India also joined the IBA and their majority of the workmen belonging to another
union called National Confederation of Bank Employees (NCBE) also participated in the discussion. The IBA had also talks with
another two unions namely National Organisation of Bank Workers (NOBW) and Indian National Bank Employees Congress (INBEC).
The Third Bi-Partite Settlement was signed on 1.7.1978 and was in operation till 31.08.1982. Certain specific issues regarding
computerisation could not be settled in the Third Bi-Partite Settlement and it was decided to refer certain specific issues
to the Board of Arbitrators. Again a question was raised as to the authority of the Arbitration Board and it was dissolved
on 11.05.1981. IBA insisted that the unresolved issues would be referred for adjudication along with the charter of demands
of the Fourth Bi-Partite Settlement. The unions were against adjudication, as it would lead to unnecessary and unending legal
complications. Finally a settlement was reached on 8.9.1983 mainly on the use of computers in the banking sector.
Fourth Bi-Partite Settlement Dated 17.09.1984
Immediately after the settlement on 8.9.1983 discussions were held between IBA, AIBEA and NCBE. This time IBA
also presented a charter of demands on the unions mainly on productivity and better customer service and a settlement was
reached on 17.09.1984 and the operation of the settlement was given retrospective effect from 1.7.1983. This settlement was
in force for a period of 4 years till 30.06.1987.