The Hindu Business Line : `Transfer' holding up bank wage pact

IT all boils down to mobility. That's the word holding up a wage agreement between public sector bank managements and unions. Put simply, managements want the freedom to transfer clerks anywhere in the country. Labour unions disagree. Other issues such as the quantum of wage increase and greater freedom for management in areas such as computerisation and outsourcing have been relegated to the backburner.

Negotiations that have gone on for nearly two years are at an impasse. Unions have threatened to strike on August 24.

The last wage agreement, each of which is valid for a five-year period, expired in November 2002.

Huge investments in information technology by every bank have rendered sizeable manpower as surplus.

Branches, which earlier had a staff of 20, are able to manage an increased business volume with just half the numbers.

According to the management of banks, there is surplus even after the successful completion of voluntary retirement schemes that saw about 105,000 takers in 2002 among those belonging to the clerks/officers cadre.

Rural focus

The Union Bank Chairman and Managing Director, Mr V. Leeladhar, says: "We have islands where we have surplus staff - especially in metros - while we are staff deficient in rural areas. Today, the government wants us to do a lot in rural areas. We have to augment staff in these places. Now, there is a Shastri award, by which a bank management can transfer clerks anywhere within the same language area. If that is implemented, then clerks can be transferred anywhere in North India, as Hindi is the common language. In spite of this, because we entered into individual agreements (between various banks and unions), our hands are tied. For instance, our bank has an agreement with our union whereby we can transfer an employee within a 100-km radius. But we want more flexibility.''

If this issue is sorted out, the agreement can be inked soon. Mr Leeladhar states, "We should be able to get our way in this . Then we will be liberal on the financial matters."

Pose that to Mr C.H. Venkatachalam, Convenor (United Forum of Bank Unions), an umbrella forum of five workmen unions and four officer unions and he replies sharply, "Certain rights are not encashable. Besides, they are asking for total freedom and asking us to trust in their judicious use of it."

On financial matters, the negotiating stances on both sides are on predictable lines: Take extreme opening positions and then bridge them gradually to what is mutually acceptable.

The unions say that the Indian Banks' Association, representing the management, began the negotiation with an offer of 8 per cent increase (about Rs 818 crore) in 2002.

The managements say the unions began with a demand of 30 per cent increase, which has since been brought down to 20 per cent.

Mr Leeladhar says that IBA is willing to pay Rs 1,400 crore or concede a 12.25 per cent increase; the unions want about Rs 2,000 crore, but are willing to negotiate.

Can banks afford the higher pay packets?

Ready answer

Mr Venkatachalam has a ready answer. He says banks earned only about 40 per cent of their total operating profit (of Rs 39,458 crore in 2003-04) from sale of investments. "All banks are doing well. Their paying capacity is more. And our workload has gone up both because of the VRS as well as increased business volumes." But should bank customers be held to ransom because of a lack of agreement?

Mr Venkatachalam points out, "We have given adequate advance notice of our intentions so that authorities can intervene and help mediate a settlement. We are going to meet the Finance Minister soon on this."

Mr Leeladhar, for his part, says, "We have to meet the situation squarely."

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