Even though the memorandum of understanding (MoU) was signed between the unions and the IBA in March on the wage settlement, the stalemate could not be broken as yet. The last wage settlement expired in October 1997.

"We are ready for a negotiated settlement. We are not averse to signing the agreement," Aibea general secretary Tarakeswar Chakraborti told The Financial Express. Chakraborti also made it clear that if other members of the united forum are not forthcoming to sign the agreement, Aibea can go ahead alone and wrap up the deal. This,according to industry sources, is possible as UFBU is merely a "platform" and not an "organisation".

However, the IBA is unlikely to sign any agreement with any particular organisation bypassing the UFBU as the management body has negotiated with the united forum and not individual trade union bodies, an association source said.

This will be the second instance of bank unions joining hands across all political lines to put up a common platform only to breakaway later. The first time such a platform crumbled under the pressure of ideological differences in the early '90s.

The UBFB comprises the All India Bank Officers' Confederation, National Confederation of Bank Employees, Bank Employees Federation of India, Indian National Bank Officers' Confederation (Inboc), Indian National Bank Employees' Federation, National Organisation of Bank Officers, National Organisation of Bank Workers, All India Bank Officers' Association and Aibea.

The UFBU is slated to meet in Mumbai on September 9 to take stock ofthe stituation. However, the Aibea has already gone ahead and told the IBA that it is ready for a negotiated settlement.

The extra load on account of pension can be shared by the employees as well as the management, Chakraborti said. However, other members of the forum are against any "compromise" with the IBA. "We are sticking to our demand of 12.25 per cent wage hike excluding the superannuation benefit," Inboc leader KK Nair said.

The unions have also rejected the IBA proposal to resolve the ongoing wage dispute at individual bank level. Chakraborti, however, admitted that "keeping the industry level wage agreement in tact may not be possible in future".

IBA maintains that the unions have agreed at a 12.25 per cent hike inclusive of cost of superannuation benefits and all aspects of wages/allowances and additional costs by way of higher gratuity, PF contribution and pension. With their bottomlines under tremendous pressure on account of low credit offtake, lacklustre economy and increasingcompetition, banks are not in a position to offer any further increase in the already huge wage bill of around Rs 1,460 crore per annum, an IBA source said.