Siddhartha Bank’s New Collective Agreement Elevates Standards in Nepal’s Banking Sector

A recent Collective Bargaining Agreement (CBA) finalized by the Association of Siddhartha Bank Staff (ASBS) is driving advancements in Nepal’s banking sector.

Signed on January 10, 2024, and enacted on January 15, the agreement introduces significant improvements for nearly 1,800 Siddhartha Bank employees – 1,570 of them count as ASBS members (more than 87% unionisation rate).

The ASBS is a member of UNI affiliate, the Financial Institute Employees’ Union of Nepal (FIEUN).

Key features of the CBA encompass a 20 percent increment in base salary and various allowances, an extension of maternity leave from 60 to 98 days, and an increase in paternity leave from 10 to 15 days. In a remarkable first for the industry, a 3-day paid marriage leave was introduced as part of the leave package.

Additional improvements include expanded holiday provisions, enhanced loan facilities for employees, widened career development opportunities, and increased support resources allocated for the union.

Mr Nar Bahadur Rawal, President of the Association of Siddhartha Bank Staff, expressed appreciation for the absence of conflicts during negotiations, stating, “We are grateful that management played a positive and cooperative role in laying the groundwork for fruitful negotiations, enabling us to secure improved terms beneficial to our members.”

FIEUN President Mr Padam Raj Regmi commended Siddhartha Bank management and the ABBS for their collaborative efforts in reaching the agreement, remarking, “This CBA establishes a positive precedent for ongoing and forthcoming CBA renewals across other private banks, insurance companies, and financial institutions in Nepal.”

UNI Asia and Pacific Regional Secretary Rajendra Acharya said, “We are pleased to observe that the union has achieved new and inclusive terms in this CBA. It is a very positive example of the role of unions – securing fair and equitable conditions for workers.”