Bank unions plan agitations from mid-April

The United Forum of Bank Unions has decided to hold protests in April on some issues confronting the banking industry.

Speaking to Business Line here on Thursday, Mr C. H. Venkatachalam, Convenor of UFBU (United Forum of Bank Unions), said that recommendations of Khandelwal Committee, proposing amendments to the laws relating to the banking sector, and outsourcing of banking activities will be the focus areas for the agitations.

The UFBU, which met in Mangalore, has decided to undertake agitations across the country from mid-April. They will be in the form of badge-wearing, demonstrations, delegations, dharna, and so on.

“If the Government does not respond to our demands, UFBU may think of an all-India strike. If necessary, all-India strike will be organised in May,” he said.

He termed the Khandelwal Committee report as an attack on the trade union rights, on collective bargaining, and on service conditions of the employees and officers.

Profit criteria

The report recommends bank-level wage revision based on profitability than industry-level wage revision. Wage revision should be work-related and not profit-related. Profit alone cannot be the criteria for fixing wages, he said.

Stating that the Central Government is continuing the agenda of banking reforms, he said in Budget 2012-13 there is a mention about the Government proceeding with the Banking Laws (Amendment) Bill. The objective is to amend the Banking Regulation Act and the Banking Companies Acquisition Act.

This is aimed at liberalising and deregulating these two laws to give more freedom for private capital, both in private and public sector banks.

If amended, private banks will become more vulnerable for either some corporate takeover or foreign takeover. With amendments, the policies of public sector banks (PSBs) will tend to become corporate, he said.

The increased involvement of the corporate sector in the management of banks will lead them to focus on profits rather than meeting social obligations.

These are not good for the country where the banks deal with public money, Mr Venkatachalam said.

Opposing the outsourcing of banking activities, he said it is risky with regard to jobs and job security.

vinayakaj@thehindu.co.in