Strike by PSB staff hits banks' operations

Chidambaram says profits not for salary increase alone

A strike by public sector bank employee unions on Monday hit bank operations across the country. The two-day strike, on Monday and Tuesday, was called by the United Forum of Bank Unions (UFBU).

About 100 million cheques, worth Rs 7,40,000 crore, couldn't be cleared on Monday, said C H Venkatachalam, general secretary, All India Bank Employees Association (AIBEA). At the clearing house in Chennai, about nine million cheques, worth about Rs 64,000 crore, could not be processed. Government transactions, foreign exchange transactions, money market operations, etc, were also hit. In many places, automated teller machines (ATMs) did not function or were short of funds.

The striking unions' demands include an immediate wage revision for bank employees and officers. UFBU has said wage revision settlements in banks are due from November 2012. It has alleged Indian Banks' Association (IBA) has been delaying the matter for the past year.

Meanwhile, speaking at the 78th foundation day of Indian Overseas Bank in New Delhi, Finance Minister P Chidambaram said the profits of banks couldn't be used to increase salaries alone, as there were other obligations. "I will appeal to employees and officers of banks to recognise that bank profits and earnings have other claims. While the claims of officers, staff and employees must be duly acknowledged, and a fair and just (wage) settlement should be arrived at, there are other claimants to the profits," he said.

A significant part of the retained earnings had to be used to infuse additional capital, failing which banks wouldn't have the capital required through the next five-20 years, he said. "The capital is to take care of a number of things. They were obliged to declare a dividend, both to the majority owner of the bank and other shareholders," he said, adding another part of the retained earnings had to be infused as capital for furthering business.

According to an Indian Bank's Association executive, the next date for management-unions for wage negotiations is yet to be finalised.

Venkatachalam said as the Nachiket Mor committee had suggested banks cover all citizens of the country, banks had to open an additional 500 million accounts and this would add to the workload on employees and officers. "We are already dealing with so many government schemes, which have increased the volume of work. Therefore, a reasonable wage revision is necessary," he said. He added IBA had offered to increase wages 10 per cent, which was inadequate.

"We are ready to resolve the issues by discussions…but IBA and the government should also be forthcoming. If the same negative attitude continues, we will be left with no alternative but to further intensify the agitation," Venkatachalam said. IBA official said operations were affected at branches in Mumbai too due to the strike. "However, ATMs and net banking were working normally. Branches of private sector banks whose staff did not participate in the agitation, saw normal operations," the official said.

UFBU comprises nine bank trade unions, including AIBEA, All India Bank Officers' Confederation, National Confederation of Bank Employees, All India Bank Officers' Association, Bank Employees Federation of India and Indian Nation Bank Employees' Federation, along with a million bank employees and officers working in public sector banks, regional rural banks, etc.

KEY DEMANDS OF BANK UNIONS

• Don't drag wage negotiations. Make a quick settlement with a substantial pay hike
• Halt banking sector reforms, including privatisation
• Stop issuing new banking licences
• Govt must maintain over 51% stake in public sector banks
• Recover bad loans (non-performing assets) with heavy hands and punish defaulters