UTI AMC officers seek wage rejig; strike work

The UTI AMC Officers Association went on a hunger strike on Wednesday, seeking wage revision and reinstatement of original service conditions.

The officers' association alleged that the management of UTI Asset management Company had violated Clause 6.1 of the UTI Act 2002. The clause provided that the salary, provident fund, pension and other facilities enjoyed by the erstwhile UTI staff would continue even after they were made employees of UTI AMC.

The association claimed that there has been no revision of wages for officers for the past 10 years even though the board of trustees of UTI had decided in 2001 that wages would be revised upward every three years.

Banks saw two wage revisions in the last 10 years whereas UTI AMC officers did not get a single raise, said their association.

Officers have been transferred to far off places without following policy and those resisting transfers were suspended. Such transfer orders and suspensions should be revoked, the association said.

The officers' association demanded that the basis of transfer should be reworked and rectified by the management.

The association has also called for a dharna from August 16-19 and said that in case the management did not relent it would strike work on August 24.

Most mutual fund industry players are unfazed by the UTI strike, and called it an in-house unrest. Though most fund houses chose to remain tight-lipped over the issue, the general sentiment in the industry is one of apathy.

UTI Asset Management, one of the oldest mutual fund organisations in the industry, is also the mutual fund with the largest number of employees in the country. UTI has the largest number of employees in the country because of the vast network of its branches. “UTI even today functions more like a PSU unit, so the impact on the rest of the industry will not be too high,” said the head of a fund house who did not wish to be quoted.

UTI's All-India UTI AMC Officers' Association launched a three-day hunger strike to protest against the management's policy on pay hikes and transfers. Such a protest would see a huge impact on UTI AMC's business, said fund analysts.

“UTI is a poaching ground for most of the new asset management companies being set up in the country as it has the maximum number of trained personnel,” said an HR consultant with a head-hunting firm.

Fund officials said that since this is an in-house matter for the fund house to deal with, its impact on the industry would be minimal or non-existent even. “Very frankly, so far there is nothing to worry about,” said a fund manager with another fund house.

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