Bipartite settlement refers to an agreement or resolution reached between two parties involved in a dispute, negotiation, or conflict. The term “bipartite” indicates that the settlement involves only two parties, as opposed to a multipartite settlement that would involve multiple parties.
In a bipartite settlement, the two parties negotiate and come to an agreement on the terms and conditions that will resolve the underlying issues or conflicts. The settlement can cover a wide range of matters, including financial compensation, contractual obligations, changes in behavior or practices, dispute resolution mechanisms, or any other specific demands put forth by either party.
The goal of a bipartite settlement is to find a mutually acceptable solution that satisfies the interests and concerns of both parties, allowing them to resolve their differences and move forward. It often involves compromise and concessions from both sides to reach a fair and equitable resolution.
Bipartite settlements can be achieved through direct negotiations between the parties, facilitated discussions with the help of mediators or negotiators, or even through formal legal processes such as arbitration or litigation.
The nature of bipartite settlement demands can vary significantly depending on the specific context or situation. Bipartite settlement demands might covers:
Financial compensation: One party may demand a specific amount of money as compensation for damages, losses, or other expenses incurred as a result of the dispute.
Contractual obligations: The parties may seek to establish or modify contractual obligations to address any perceived imbalances or concerns.
Changes in behavior or practices: Demands could involve requesting the other party to alter certain behaviors, policies, or practices to prevent future conflicts or address existing grievances.
Dispute resolution mechanisms: The parties may request the implementation of specific dispute resolution processes, such as mediation or arbitration, to resolve the current issue or handle future disputes.
Non monetary concessions: Demands can extend beyond financial considerations and involve non-monetary concessions, such as commitments to specific actions or changes in organizational structure or policies.
Demands of Bank Employees that may be included in a bipartite settlement:
Work-Life Balance: A demand for policies and practices that promote work-life balance, such as flexible work arrangements, telecommuting options, and support for parental or caregiving responsibilities. Implement a 5-day work week to provide employees with a better work-life balance.
Working Hours: A demand for reasonable working hours, including provisions for overtime pay, rest periods, and limitations on excessive workloads. Clearly define and regulate working hours for officers, following the International Labour Organization norms.
Wages and Salary (Basic Pay): A demand for a fair and competitive wage or salary structure, including annual increments, performance-based incentives, and benefits. Bank employees want their basic pay to be increased to match the salaries of Central Government officers, RBI officers, and LIC officers. This will ensure fair compensation and bridge the wage gap.
Revised DA Formula: A revised DA formula is requested, with automatic merger with Basic Pay, similar to the Central Government’s approach. This adjustment will provide better compensation against rising prices and maintain employees’ purchasing power.
Sanction of Annual Increments: Annual increments should be sanctioned on January 1st and July 1st of each year, providing clarity and consistency in salary increments.
Housing Rent Allowance Revision: The demand is for an increase in HRA to match market rent, providing better housing support to employees
Quarterly Payment of Closing Allowance: The Closing Allowance, which compensates officers for increased workload at the end of each quarter, should be paid every quarter.
Review of Allowances: A review and rationalization of expenses such as halting, boarding, traveling, hill area allowance, and other related allowances should be conducted. Improve special area allowances and compensatory allowances for regions like Northeast, Jammu, Kashmir, Himachal, Leh, Ladakh, Uttarakhand, and red corridor/disturbed areas. Introduce incentives for officers serving in rural and other sensitive/difficult areas to compensate for the challenges and encourage their service.
Retirement Benefits: A demand for adequate retirement benefits, including pension plans, provident funds, and other retirement savings schemes. Revise the Provident Fund contributions to 12% of the total salary and allowances and improve the gratuity payment to one month’s salary and allowance without any limit. Align these benefits with Central Government norms and the principle of One Rank One Pension. Rollback to Existing Pension Scheme Allow employees under the National Pension System to roll back to the existing pension scheme, providing them with more security and benefits. Extend the pension scheme to employees who opt for resignation, ensuring financial security even after leaving the job.
Change in Calculation Base Date: The calculation for wage revision should be based on the establishment expenditure as of September 30, 2022, instead of March 31 of the revision year. This will provide a more accurate assessment of the wage revision.
Merging of Special Allowance: The Special Allowance, along with the DA as of October 31, 2022, should be merged with the current Basic Pay. This will streamline the payment structure and improve overall salary components.
Leave and Holidays: A demand for adequate annual leave, sick leave, maternity/paternity leave, and other types of leave entitlements. This may also include provisions for public holidays.
Health and Safety: A demand for a safe and healthy work environment, including provisions for workplace safety measures, training programs, and access to medical facilities. Roll back the IBA Medical Insurance scheme for serving officers and retirees and allow individual banks to implement policies based on their specific requirements.
Removal of Embargo: The current embargo on sanctioning stagnation increments, automatic movement, increments in the next higher scale, and certain promotion-related factors should be removed. This change aligns with principles of fairness and avoids imposing major penalties on employees.
Grievance Handling: A demand for an effective grievance handling mechanism to address employee concerns, disputes, and conflicts in a fair and timely manner.
Equal Opportunity: A demand for equal opportunity in employment, including provisions for non-discrimination, equal pay for equal work, and promotion opportunities based on merit.
Training and Development: A demand for training and development programs to enhance the skills and knowledge of employees, leading to career growth and better job prospects.
CONCLUSION:
The 12th Bipartite Settlement is a negotiation between bank employees and management to address their demands. Bank employees want higher salaries, better benefits, fair promotions, and good working conditions to ensure a strong and productive banking sector.
