Why Bank Unions
Remained Silent Spectator?
Contributed by Sri JN Shukla
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( It may appear to be lengthy, but read. If you deem it fit yo be read, please share/ forward to banking fraternity.)
The Banking Sector Unions, obviously we mean constituents of United Forum of Banks Unions, proclaim themselves as watchdog to the interests of Public Sector Banks. They should, no doubt, do it, being important stakeholder. They acclaim to have fought for nationalization, credit policy, expansion etc. Still they fight on against any dilution of government holdings, even within the constitutionally permitted level.
Given these affirmatives, there exists 'deep silence' in many vital areas, where they were expected to be more exerting. Hope, bank employees & officers know well that their well being is very much linked to the well being of Banks. Banks are service industry and its all services are cost borne. Banks must have it's products and services cost efficient and viable so as to meet the operating cost, cover risks & ensure reasonable surpluses- profits. The feeling of Bank employees and officers is that they are now compareably lowest paid workforce and very often they blame government for it. Here, they totally forget the very fact that in matters of their wages, allowances and service conditions government stands no where in picture. Issues like wages & service conditions for long are being decided between industry and workforce Associations, i. e. Indian Banks' Association and workmen/ officers Unions. It is agreed only when an mutually acceptable agreement is reached between the parties to settlement. It is never unilateral or by notification of govt. Whatsoever have so far had happened, it happened under conditions as set out above. So, if there is any blame, for poor wages & service conditions, blame should squarely go to Unions who finalize the settlements.
Now, there is another aspect that needs very objective analysis. The improvement of wages and service conditions have had been based on 'paying capacity' so far. Paying capacities were always a determinator of increase quantum. It exists even today. Today, the net profit being negative, offer of increase has run into bad weather and very bleak in consonance with weakest paying capacity. Here, perhaps as stakeholder, unions need to take serious view of causes that resulted in such condition of zero paying capacity. They should have taken proactive steps to protect and preserve the economic viability of banking. They should have opposed free services, rather asked from government to compensate banks for governmental schemes and businesses, as government is no more sole owner of Banks and it has no right to get its work done by banks free of charge. Users and society too has no right to avail banking services at free. If govt wants any subsidised or concenssional services, govt should for fair reasons make good to such extent.
Thirdly, the Unions as genuine instrument were required to be not only live, cautious & watchful, but active against certain policies decided by political masters. The Politicization of banking resources was taken as serious threat to operational autonomy of PSBs and it started raising its head under Mrs. Gandhi government, immediately after nationalization of banks. It continued by all successive governments with more vigor. Loan appraisals were hugely compromised & jeopardized, per force by governments in power. Loan Mellas were held. Credit appraisal characteristics under went complete change. Govt machinery & brokers loaded the corruption aspect in banking. Unions were genuine instrument to play detterent role to fight back it, but they remained onlooker.
Fourthly, today farm loan waiver has become handy tool of political masters. Though waiver amounts come from govt exchequer, but it causes cultural trouble to banking. Farm loan is cheapest interest wise and it is more easy availability point of view. Now, farm loan is granted as overdraft, on the basis of land holding, which farmers withdraw, necessarily not for farming inputs, but to meet their other domestic needs. Despite bumper harvest, farm loans are not repaid by farmers, because they know, on election eve, it would be waived. It is now like an epedemic. Now in India farmers don't die of natural death or for want of medical treatment. Their death is attributed as 'suicide' if deceased has any bank loan. Unions were dutiful to view it as threat to banks' health, as loan waiver hugely dented the recovery character of bank loans. Farm loans encouraged diversion of fund as well. It has not been used for the purpose. It turns out to be a consumer overdraft, but at such subsidised interest plus chance of waiver. Political parties just try to influence loanee farmers by promising them loan waiver on coming to power. Is it not deferred bribing? If you bribe cash for vote, it is crime, but if you make a promise note to embassy after election, it's lawful! Is it not the politicisation of banking resources?
What's about urban poors? Why can't their loans be waived? Farmers have assets, while urban poors might not have any assets. They are also financed by Banks under various poverty alleviation programs. In their cases, Recovery Certificates are issued by Banks and entire Bank dues with interest are along with interest by District Collector with 10% collection charges. Further, they are blacklisted for further finance.
In case of defaults of general borrowers & loans going NPA, he is barred from further loaning, even if he repaid earlier loan entirely. But in case of farm loans even by waiver/writes off he is not barred from further finance. UPA govt waived some around Rs.82000 crors. Those farmers further borrowed and now again quite hopeful to get their loans waived.
Today PSBs are plunged into financial turmoil due to gigantic volume of NPAs. Who backed this organized loots? Its no more secret that how UPA government Prime Minister & Finance Minister twisted, manipulated &
manoeuvred bank executives to grant loan to unscrupulous corporates, helped them divert loans, motivated them not to pay, made out schemes to bail out them by waiver, write off or restructuring etc. No law was made to catch these looters. It is this govt which made some law to enforce recovery. Unions were demanding legal frame work, but when made, they didn't thank even for name sake, because law was made by Modi government. Question still remains to be answered by Unions as to who were helping from behind these corporates who plundered banks? Why Unions were silent when it was going on? Why are they not categorical evev today to say that PSBs were plundered by Man Mohan Singh & Chidambram duo? No one can believe, Unions or their leaders were unaware of it. No one can believe that employees & officers representative Directors on banks' Boards were unaware. Look to past several decades, there is no instance in any bank that these representative directors had recorded any descent on any financial proposal. Look to 2008-12 financing with tacit involvement of then PM/FM. There is no trace of any action against these activities. Unions miserably failed to contain and combat these unholy nexuses and situations. In fact, protecting banking at their end is big hoax. Its just fraud on banking fraternity. Unions have been shielding management-corporate-executive nexus which ended in such holocast as of present level of NPAs.
Fifthly, PCA weapon was allowed by Unions, without any protest. Unions didn't apply their mind to its resultant damages. RBI directed Banks to sign a memorandum setting therein recovery plans under various parameters, failing which, RBI was empowered to take independent view with regard to Banks. It was subscribed by Unions. The PCA motive was to weaken further these weak banks by rolling back them from market operations. This very simple thing, Unions failed to understand and today as many as 11 PSBs are languishing under rigorous PCA norms, loosing their valued customers, operational businesses. Market share etc. Lending is the core job that yield earning. If lending is stopped, whats else way to earn? These banks are growing with deposits, with deminishing credits. These banks hold about 22% of banking business, but put under PCA embargo. Except some letters of expression/ impression, no action was initiated by unions in this regard. Unions stood with RBI decision, as they saw RBI action is being contested by Govt. Govt was opposed to PCA as it created operational blockage. Government steps were ridiculed by giving it color of intervention in autonomy of RBI. Was it really an issue of Autonomy or autocracy? Here, Unions should have taken actions to protect these banks from nefarious design of RBI, but nothing of that sort on Unions record. Govt was determined on this issue and we find Urjit Patel exit, as end result. Unions pretend to defend Banks, but here what we see? Politics at the cost of 11 PSBs survival!
Broadly these were the areas where Unions failed to act at appropriate time. Merger/Consolidation was not a genuine cause of concerns to oppose. Real issue is ownership of Banks. It must remain under Public Sector. So far consolidation of PSBs are concerned, its right step in right direction. Double stand or speak in this regard is unbecoming at all. When a private sector bank dooms, its stake holders are rescued by merger in some PSBs. We know how 196 Regional Rural Banks were languishing under perpetual losses. They were consolidated into 56. Barring 3/4 all are now in sound health. RRBs are again underway of reconsolidation into 35 or so. One should not be surprised if in near future all RRBs are consolidated into one RRB or merged with their sponsors.
Bank employees or officers are placed in most confused state of mind, as appears from the outburst in social media. They love Unions, but now they hate their leaders. All leaders in private they favor consolidation, but officially they boast to be anti- merger. If you ask them reasons-why they oppose- they don't have any convincing answer.
Wages & services can't be subject to profits or losses. When banks are operating in such abjective condition as to cater social sector, profit holds no relevance. Industry needs ideal wages and service conditions comparatively better looking to operational risks and responsibilities.. Its obnoxious stand demand percentage based financial load. Fix wages and other service conditions and then think how to meet increased expenses. Railways, postal services and several other organizations are getting justifiable increase, incentives, exgracia etc irrespective of their profits or loss. What is the logic or pragmatism to stick to paying capacity? Why not earning capacity? Look to operating profits and diminishing trend in percentage of wage expenditure. Industry is growing, operating profits are mounting, but percentage of staff expenses are coming down.
Pension is a part of service condition, then why it is not revised whenever wages were/are revised? Is it really trade unionism? OK, it would have been pragmatic, if pensioners were also accommodated in the given financial load. Was it not treachery of the sort that they got financial load sanctioned including pension revision issue, but distributed entire load amount on working force? Really, is it greatness or in real term meanness?
One Union went on strike as in 2/3 banks no mandate is given for wage revision of scale 4 and above officers. All officers have been forced to strike, knowing that such stand at few individual banks won't mean. There is no Pension revision mandate from any bank. None of the Unions bothered about it. Why didn't they gave a strike call for Pension Revision mandate? In RBI, unions gave two days strike call just for pension issue. Here, all 9 unions had signed a document which testifies 'no contractual relationship between Pensioners and their respective banks.' How a shameless situation, the Unions & its leaders have has reached at!
(J. N. Shukla/Prayagraj/01.01.2019)
लघु कथा*: एक नवयुवती बस में बैठी, अगले स्टॉप पर एक दबंग और क्रोधी बूढ़ी माँ आईं और उसके बगल की सीट पर बैठ गईं। उन्होंने अपने कई बैग युवती से सटाकर रख दिए।
बूढ़ी महिला के दूसरी ओर बैठी महिला परेशान हो गई, उसने युवती से कहा कि वह बूढ़ी महिला से क्यों नहीं बोलती या कुछ कहती।
युवती ने मुस्कराते हुए जवाब दिया: "हर बात पर असभ्य व्यवहार या बहस करना आवश्यक नहीं, मैं अगले स्टॉप पर उतरने वाली हूं।"
यह प्रतिक्रिया महत्वपूर्ण है जिसे सुनहरे अक्षरों में लिखी जानी चाहिए:
*हर बात पर असभ्य व्यवहार या बहस करना आवश्यक नहीं, आखिर हमारे साथ की यात्रा है ही कितनी लम्बी!*
अगर हमें यह एहसास हो जाए कि यहाँ हमारा समय कितना कम है; तो व्यर्थ के झगड़े, निरर्थक तर्क, दूसरों को माफ नहीं करना, बात-बात पर असहमति और दूसरों में गलती खोजने वाला रवैया समय और ऊर्जा की बर्बादी का कारण नहीं तो और क्या है?
अगर किसी ने आपका दिल तोड़ा?
शांत रहो, आखिर यात्रा इतनी छोटी जो है।
क्या किसी ने आपके साथ विश्वासघात किया, धमकाया, धोखा दिया या अपमानित किया?
शांत रहें, क्षमा करें, आखिर हमारी यात्रा इतनी कम जो है।
जो भी मुसीबतें हमारे सामने आती हैं, हमें याद रखना चाहिए कि हमारे साथ की यात्रा बहुत छोटी ही है।
इस यात्रा की अवधि कोई नहीं जानता। कोई नहीं जानता कि उनका पड़ाव कब आएगा। हमारी यात्रा एक साथ इतनी कम है कि मालूम नहीं अगले पल क्या होने वाला है।
तो क्यों नहीं, हम अपने दोस्तों व परिवारजनों का ध्यान रखें और अपने काम को संजोएं। आईए, हम एक-दूसरे के लिए सम्मानजनक, दयालु और क्षमाशील हों और यह अहसास हमें कृतज्ञता और उल्लास से भर दें।
अगर मेरे व्यवहार ने आपको कभी कोई चोट पहुंचाई है तो मैं आपसे क्षमा मांगता हूं। यदि आपने मुझे कभी दुख पहुंचाया है, तो मैंने आपको पहले ही क्षमा कर दिया है।
आखिर, हमारी यात्रा एक साथ है ही कितनी!
😊😊
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