Indian Bank Backtracks From Arrears Agreement

The management of Indian Bank has denied its employees Rs 83 crore arrears due for the last couple of years in spite of having agreed to make payments this year and having made provisions in its balance-sheet.

The bank management agreed to pay arrears to its employees a few months back but then backtracked in spite of having made provision for it. Lack of profitability at the bank has been the reason cited for non-payment of arrears, while United Bank of India and UCO Bank have already initiated the process of settling dues to its employees in spite of having made no provisions.

Nevertheless, it is expected that the bank will register a marginal net profit this year.

The Government of India has asked the management of Indian Bank to stop payment of arrears before another round of capital is infused into the institution.

Meanwhile, the United Forum of Banks Union will be meeting the Finance minister for resolving the issue. UFBU will also urge the government to merge Benaras State Bank Ltd with one of the nationalised banks since it was directed by the Reserve Bank of India to stop operations.

"If these issues are not resolved we will resort to strikes after the festive season is over," said the general secretary of All India Bank Employees Association, Tarakeswar Chakroborty. Meanwhile, the association will resort to a day's strike when the new Labour Laws Bill is tabled at the parliament.

"We regret that in view of the Indian Bank management's obstinacy and continued violation of the commitment for disbursement of arrears in instalments, an All India Strike in banks will be unavoidable," Chakraborti said.

Chakraborti said the strike had become unavoidable as the the management indulged in brazen violation of the commitment made before the regional labour commissioner, Mumbai on June 29 last for settling the modalities of payment of wage arrears through mutual dialogue.

While the other two concerned banks - UCO and United Bank- parties to the same settlement, had finalised through mutual dialogue the modalities and paid the first instalment of the arrears, the Indian Bank had refused to have any talks with the unions, Sengupta said.