The Hindu Business Line : Oriental Bank yet to get a hang of GTB salary maze

THE employees of the Oriental Bank of Commerce (OBC), who are agitating over the high salaries paid to the erstwhile Global Trust Bank (GTB) staff, have a bunch of companions from an unexpected quarter. The OBC top management too is spending sleepless nights trying to find its way out of the GTB's salary structure maze.

"There are layers within layers. We are discovering new categories (of salary slabs) everyday. The packages are different. In cases where the salary is the same, the packages have been structured differently," the Chairman and Managing Director, OBC, Mr B.D. Narang, said.

GTB, which had run into heavy losses and high non-performing assets (NPA), was merged with OBC a couple of months ago.

Mr Narang said that other thansalary structures, OBC is also looking into how GTB's employees on contract would be treated. He said that OBC would be seeking legal opinion on whether the bank is bound to absorb such employees into its fold.

"Many of the GTB staff has been hired by the bank on contract. We have to get the issue legally examined (on whether is it binding on the merged entity to retain these staff)," Mr Narang said.

At the time of its merger with OBC, GTB had staff strength of around 1,300 employees, out of which barely 200 have put in their resignation.

While the core banking staff has remained with OBC, those going out are mainly the top management and a number of employees handling the systems and information technology department.

The scheme for amalgamation had said that there would be continuation of service for the GTB employees. "All the employees of the transferor bank (GTB) shall continue in service and be deemed to have been appointed in the transferee bank (OBC) at the same remuneration and on the same terms and conditions of service, as were applicable to such employees immediately before the close of business on July 24, 2004," the scheme had said.

OBC has been allowed to offer its existing salary structure to the employees absorbed from GTB after the expiry of three years from the date of the merger.

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