The report on scrapping the industry wise wage settlement system has been opposed by the staff body of regional rural banks, All India Regional Rural Bank Employees Association (AIRRBEA).

"We denounce the recommendation of the committee for the removal of industry-wise wage settlement," said Dilip Kumar Mukherjee, Secretary General, AIRRBEA.

The Khandelwal committee headed by A K Khandelwal, former Chairman and Managing Director, Bank of Baroda, had suggested that the public sector banks should be allowed to set their own salaries for the employees depending on the skill sets possessed by them and overall performance of banks.

Currently, most government-owned banks follow an industry-wide wage settlement brokered by the Indian Banks Association once in five years.

The committee appointed by the Union Government has recommended for 15-20 per cent variable component in the salary package of employees.

"We feel such recommendations are anti-employee in nature and the present practise of industry-wise wage settlement must continue in the banking industry," finance minister, Pranab Mukherjee said.