The Hindu Business Line : Bank unions plan strike on Sept 12

Mumbai, Aug. 29 The United Forum of Bank Unions has called for a one-day strike on September 12 in order to press for the implementation of the memorandum of understanding signed with Indian Banks’ Association.

Mr H.N. Sinor, Chief Executive, IBA, said, “The strike is uncalled for as the issues are old and have been discussed in the 7th and 8th Bipartite Agreements.”

About the unions’ demands for pension, Mr Sinor said it will put an enormous burden on the banks in its present form and the IBA cannot agree to it. He also said that the unions were to get back to the IBA with an alternative suggestion, but so far that had not happened.

Outsourcing issue

The issue of outsourcing must be discussed with the managements of individual banks separately, as there cannot be one model for the entire industry, Mr Sinor said.

“Each bank can decide which activity it wants to outsource in order to cut costs. We have agreed that no core banking activity would be outsourced and there would be no cutting of jobs.”

However, according to Mr C.H. Venkatachalam, General Secretary, All India Bank Officers Association, one of the members of the UFBU, the unions did get back to the IBA with the cost of pension after consulting an actuarial consultant. But the IBA wanted the matter to be referred to the Government.

On the issue of outsourcing, Mr Venkatachalam said the unions are against activities such as cash transaction and customer service being outsourced.

These are activities for which banks are now hiring people on contract as they try to achieve financial inclusion, he said.

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