Strike Paralyses Banking Operations

Banking services in the country were paralysed today as bank employees owing allegiance to the All India Bank Employees Association (AIBEA) stayed away from work to protest against the labour policies of the Standard Chartered Bank (SCB). About six lakh employees of 54 banks across the country participated in the strike, which lead to non-participation of banks in clearing operations.

A senior official of the AIBEA said a meeting of the nine constituents of the United Forum of Bank Unions (UFBU) has been scheduled for next week to decide on the future course of action in the matter. "At the meeting we will consider boycotting instruments of the Standard Chartered Bank if it does not stop its labour practices," L K Nagda, joint secretary, AIBEA said.

The call money and the government securities markets saw thin volumes. In view of the strike, deals in both the call money and G-sec markets were struck for settlement tomorrow. In the forex market, too, the trading volume was very thin.

The functioning of around 23 of the 27 public sector banks was affected as officers owing allegiance to the All India Bank Officers Confederation (AIBOC), the All India Bank Officers' Association (AIBOA) and the National Organisation of Bank Officers (NOBO), which together command the majority membership among bank officers in the PSBs, extended support for the strike and did not handle any clerical work.

Working of the State Bank of India (SBI), Bank of Baroda (BOB), State Bank of Saurashtra (SBS) and the India Overseas Bank (IOB) was generally unaffected as a majority of their employees owe allegiance to other unions. The co-operative banks functioned as usual as they were exempted from the strike. The Reserve Bank of India (RBI) also functioned as usual as its employees extended only moral support to the strike.

An RBI spokesperson said 89 out of the 117 banks participated in the clearing operations and the clearing volumes were close to normal.

Nagda pointed out that the regional labour commissioner had suggested that the contentious transfer issue at SCB be referred to a committee consisting of one representative each from AIBEA, SCB and the IBA for review and resolution.

"Though the suggestion was acceptable to the AIBEA and the IBA, the SCB management could not accept the suggestion because differences emerged regarding payment of wages/interim relief wages to the 27 affected workmen," he said.

The AIBEA has pointed out that the action of the SCB management in transferring employees from one language area to another was in gross violation of the Sastry Award of 1953 and existing industry level settlements.

The SCB has taken the stand that the transfer orders issued to some of its staff was in line with the awards, settlements and MoU signed with the SCB Employees' Federation on November 6, 2001.