State-owned Sonali Bank PLC employees are protesting, demanding six "incentive bonuses" for the fiscal year 2024, among others.
The protests have been ongoing for the past two days, with employees calling for the introduction of a descendant quota, the permanent employment of temporary workers who have served for 25-30 years, and the appointment of new employees.
On Monday, the Motijheel head office staff staged a one-hour sit-in outside the offices of the chairman and managing director.
An employee, speaking on condition of anonymity, said that on Monday, the Sonali Bank Employees Union President, Mohammad Mizanul Haque, and General Secretary, MD Helal Uddin, along with a delegation of workers, submitted a demand letter to the chairman, managing director, and CEO. The letter emphasized their request for six incentive bonuses, citing previous bonuses as a benchmark.
The letter stated: “In 2022, Sonali Bankemployees received 4.5 incentive bonuses against an operating profit of Tk2,382 crore. Despite earning a record profit of Tk3,846 crore in 2023, we are being offered only three incentive bonuses.”
New guidelines issued in February by the Department of Financial Institutions and Markets (DFIM) of the Ministry of Finance limit state-run banks to a maximum of three incentive bonuses per year.
These guidelines clarify that the incentive bonus is not an entitlement but a financial benefit granted at the board's discretion, noting that such bonuses directly impact cash flow.
Draft guidelines from 2014 recommended providing bonuses based on the net profit rate on working funds. However, in the current context, state-run banks like Bangladesh Bank benefit from saving provisions, which, if adjusted, could result in losses instead of profits.
The new guidelines set a scoring system for distributing incentive bonuses: 20% based on the Annual Performance Agreement (APA) implementation rate and 80% on the operating profit rate.
Banks scoring above 50 are eligible for bonuses, with the scale as follows:
50-60: One month's basic salary
61-70: One and a half months' basic salary
71-80: Two months' basic salary
81-90: Two and a half months' basic salary
Above 90: Three months' basic salary
The employees' protests and demands underscore the ongoing tensions within state-run banks regarding compensation and employment conditions. The outcome of these protests and negotiations with the bank’s management remains to be seen.
