Bank employee unions to go on strike on October 22 against PSB mergers

Most of the public sector banks have said that banking services will be affected during the strike.
Bank employee unions to go on strike on October 22 against PSB mergers
Bank employee unions to go on strike on October 22 against PSB mergers
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Banking services could be affected next week as two bank unions have warned they will go on a 24-hour long strike on October 22 to protest against the recent bank mergers, falling deposit rates and a call for job security.

The two unions - the All India Bank Employees' Association (AIBEA) and the Bank Employees Federation of India (BEFI) - have informed the Indian Banks' Association (IBA) through a notice that they will go on strike from 6 a.m. on October 22 to 6 a.m. on October 23.

In a joint statement released by AIBEA and BEFI in September, they ‘vehemently’ opposed the mergers and potential privatisation of public sector banks.

“Similarly, we can also understand that mergers are in exercise to masquerade the huge bad loans by hiding them under a bigger Balance Sheet. It is a matter of concern for all of us that the burden of haircuts, concessions and write offs extended to the corporate defaulters are sought to be put on the shoulders of the common banking clientele in the form of penalty charges and increased service charges. Hence fighting against bad loans is a part of our struggle against mergers and privatisation,” a joint statement from AIBEA and BEFI said.

The unions are also concerned that mergers will mean closure of a large number of brands, which will eventually result in job losses.

Calling it danger towards their job security, the statement says that the proposed merger of 10 Banks and resultant closure of 6 Banks need to be opposed with all its strength.

The protest calls for attention on six main issues. This includes, stopping merger of banks, stopping banking reforms, ensuring recovery of bad loans, taking stringent action on defaulters, not harassing customers with penal charges and increase in service charges, increasing interest rate on Deposits, stopping attacks on jobs and job security and adequate recruitments in all Banks.

State Bank of India has already said the impact would be minimum as most of its employees are not members of the participating unions.

"The membership of our bank employees in unions participating in the strike is very few, so the impact of strike on our operation will be minimal," SBI said in the notice. It further said the loss from the proposed strike cannot be quantified as of now.

Other banks such as Bank of Maharashtra and Syndicate Bank have, however, expressed concern over providing customer services.

"The bank is taking necessary steps tor smooth functioning of branches on the proposed strike day. However in the event the strike materialises, the functioning of the branches/offices may be impacted," Syndicate Bank said in a notice to stock exchanges.

Bank of Baroda, in a filing with the exchanges, said: "The Bank is taking necessary steps for smooth functioning of bank's branches on the day of strike, in the event the strike materialises, the functioning of the branches may be affected/paralysed."

AIBEA and BEFI said they are opposing outsourcing of regular and perennial nature of banking jobs, and privatisation of banking industry while demanding adequate recruitment of clerical and sub-staff and stringent steps for recovery of mounting bad loans.

Last month, the officers' unions had called a two-day all India bank strike on September 26 and 27 that was later withdrawn on government intervention.

With IANS inputs

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