Press Release By Bank Union Before Strike of 18th December

"United Forum of Bank Unions (UFBU)" : Press Release dated December 11, 2013
Issued by M V Murali, National Convenor, United Forum of Bank Unions (UFBU) &
General Secretary, National Confederation of Bank Employees (NCBE) & General
Secretary, All India State Bank of India Staff Federation (AISBISF) at Calicut.

"ALL INDIA BANK STRIKE ON 18TH DECEMBER WEDNESDAY"

United Forum of Bank Unions is the umbrella organization of all the 9 unions in the banking sector. The Officers’ Unions are All India Bank Officers Confederation (AIBOC), All India Bank Officers’ Association (AIBOA), Indian National Bank Officers Congress (INBOC) and National Organisation of Bank Officers (NOBO). The five Award Staff Unions are All India Bank Employees’ Association (AIBEA), National Confederation of Bank Employees (NCBE), Bank Employees Federation of India (BEFI) Indian National Bank Employees Federation (INBEF) and National Organisation of Bank Workers (NOBW). 

Bank Employees and Officers are going on One Day All India Strike on 18th December 2013 under the banner of United Forum of Bank Unions (UFBU). The demands raised are Immediate Wage Revision and Stoppage of Banking Reforms.

"EXPEDITE WAGE REVISION"

Wages and service conditions in the banking sector are governed by the industry level bipartite settlements signed by the Indian Banks Association (IBA) and the Trade Unions of bank employees and officers. Public Sector Banks, Private Sector Banks and Foreign Banks who give their mandate to the Indian Banks Association are party to the settlements and hence are covered by the agreements. 

The alarming and unabated price rise has seriously eroded the income of the employees. Consumer Price Index has gone up by almost 2400 points since November 2007 (1960 =100). Hence the wage revision to catch up with the high inflation and price has become an urgent necessity. The job profile of the staff has also undergone a sea change and all these require to be properly remunerated with adequate increase in wages. 

The 9th Bipartite Settlement on revision of wages and service conditions covered the period from 1 November 2007 to 31 10 2012. Consequently United Forum of Bank Unions submitted a common charter of demands for the employees and officers before the date of expiry of the agreement for the 10th Bipartite. The IBA is delaying the settlement. During the last one year even though 5 rounds of talks were held IBA has not even come out with any clear proposal as to the quantum of increase. 

The Bank Management has been projecting that they could not meet the wage increase demand by the UFBU as the productivity in the banking sector is low. An analysis of RBI data (based on various parameters) indicates that Indian banks, particularly the public sector banks have shown significant progress on the productivity and efficiency front over the last two decades. Staff expenses have also come down as per the data available.

"STOP BANKING REFORMS DETRIMENTAL TO NATIONAL GROWTH"

The Public Sector Banks (PSBs) account for well over 70% of the assets of the banking system in the country. They have been contributing significantly over years to the country’s economic development. The deregulated free market economy has done havoc in the US & Europe. But in India the impact of the economic crisis was not felt because of the fact that Indian Financial Sector continues to be dominated by the Public Sector. The resistance by the Trade Unions in the sector under the banner of UFBU and the intervention of the political left had prevented the government from implementing the second generation reforms. 

The Central Government passed the Banking Regulation Act amendment in December 2012 lifting the cap on voting rights of the share holders. Earlier the voting right of a share holder was limited to 1% in PSBs and 10% in Private Banks. That has been changed to 10% and 26%. It would be possible for 5 or 6 corporate houses to get the PSBs to their control effecting the very existence and continued services of PSBs towards national development. Earlier 23% of every deposit has to be deposited in government securities enabling the government to utilise the fund for effective developmental initiatives. Now it can even be placed even in corporate bonds as per the amendments in BRA. 

Banks in India today have nearly 75,00,000 crores as deposits which represents the hard earned savings of the people of the country. Naturally banking institutions have to be properly regulated so as to protect the resources. The experience world wide has shown that the de regulation and liberal banking policies has led to the collapse of major banks in many countries including in USA and Europe. Indian banks were saved because of our strong regulations and the public sector character. But as part of the reforms the govt. is moving away from the principled stand of nationalisation. 

Recently RBI has announced in its discussion paper that the Government’ Equity capital in the banks can be reduced to less than 51%. This means nothing but privatisation of our Public Sector Banks (PSBs). The discussion paper also proposed that the Banks may resort to merger to become international banks. 

It means that the limited resources of the country which would have been available for the national development will be shared to the foreign corporates also which is detrimental to the country. The move to give banking license to corporates who were responsible for the collapse of many banks during the period 1947 – 1969 is a retrograde step. The proposal to give foreign banks near national status is also not in the interest of country.

"RECRUIT MORE HANDS IN BANKS"

The work load in the bank branches/offices has gone up substantially due to increase in total volume of business and also due to non provision of adequate staff and officers in the branches. Employees and officers are working under a lot of stress and strain.

"RESTORE COMPASSIONATE APPOINTMENTS IN BANKING SECTOR"

The issue of compassionate appointment in Banks is a long standing one. The Managements have stopped the appointment of spouses/dependents of deceased employees based on a Supreme Court judgement. Central and State governments are still offering compassionate appointments.

"STOP OUTSOURCING OF BANKING SERVICES"

Outsourcing of banking operations is fraught with grave commercial risk and is against the basic principles of maintaining secrecy of customer accounts. Besides going away from the industrial policy guidelines for the public sector banks to create permanent jobs for the citizens, the scrutiny, secrecy and security of the banking transactions are getting sacrificed. 

As part of the agitational programmes all the constituent Unions and their affiliates have addressed letter to Chairman, Indian Banks Association. Mass demonstrations were held in all State Capitals and other major centres throughout the country on various dates. UFBU will join the Parliament March planned by the Central Trade Unions on 12th December. On 16th Bank employees and Officers will attend duty bearing badges. On 17th December, the previous day of the strike mass demonstrations, rallies, processions and public meetings will be held at all centres.

We call upon the customers and general public and all the organizations to support the cause and cooperate with the strike action planned. We also request the media to present the factual situation in the banking sector with a national development perspective -

M V MURALI.