Employees of Kerala’s Catholic Syrian Bank are on strike for two days on Monday and Tuesday, in protest against the bank’s decision to lower the retirement age from 60 years to 58 years, as well as demanding renewal of the wage contract which lost its validity on October 31, 2017.
Their other demands pertain to leave policy, allowance and leave fare concession.
The Catholic Syrian Bank, which was set up in 1921 and is one of the oldest banks in Kerala, has been reportedly running at a loss of Rs 197 crore.
In January, the private sector bank had announced that it will lower the retirement age of its employees from 60 years to 58 years with effect from April 30, 2019, in order to cut down costs.
The bank has 114 employees aged 58 years or above presently, out of a total employee strength of nearly 3,000.
In a circular, the bank had stated that officer employees, who have completed 58 years and above or will be attaining 58 years as on May 1, 2019, will be relieved from service on superannuation/ retirement with effect from April 30, 2019.
According to CVR Rajendran, MD and CEO of the bank, salary expenses are steep for the bank, accounting for 23% of income against the industry average of about 10%, which has necessitated the move.
The decision was opposed by the All India Bank Officers’ Confederation (AIBOC), who termed it anti-employee.
“When the industry-wide retirement age is 60 years, the bank cannot unilaterally reduce it to 58 years….This is the most unsettling and retrograde decision, disrupting the life of several officers who had planned for a normal retirement at 60 years. We will explore legal options to challenge this arbitrary reduction in retirement age,” Soumya Datta, General Secretary of AIBOC had said.
Meanwhile, earlier this month, it was reported that the Catholic Syrian Bank is planning to change its name to ‘CSB Bank Limited’, ahead of its listing on the stock exchange.