Madras High Court stops SBI’s move to withdraw check-off facility-ET
CHENNAI: The Madras High Court on Thursday stopped India's largest bank State Bank of India from discontinuing what is called the "checkoff facility," an arrangement that gives its trade union easy access to the subscription fee paid by its officer members.
SBI's move to discontinue the check-off facility, effected during the term of its just-retired chairman Pratip Chaudhuri, was seen as a way to quell trade union activities.
The High Court verdict was closely watched as an order supporting the axing of the facility could have made similar trade union arrangements elsewhere vulnerable.
"The withdrawal of this facility would have been a big blow to the union, and could have had major implications," said R Vaigai, a senior lawyer who appeared for the All-India SBI Officers' Federation, which appealed against the SBI move.
Ranjit Goswami, SBI's chief general manager for human resources, was not available for comment. Chaudhuri could also not be reached for his view.
The check-off facility works this way: based on a specific written request of an employee, the bank management deducts the monthly subscription (it varies from Rs 150 to Rs 200, depending on the circle) from the salary, payable to the union named by the employee.
SBI was doing this on salary day, which is the twenty-fifth of every month. The facility, which has been extended to the officers associations since 1970, was withdrawn by Chaudhuri.
Instead , members of the union were asked to pay the fee individually. Thomas Franco, general secretary of the Chennai circle of the officers' association, said the money thus collected is important to sustain the day-to-day operations of the union. There are 80,000 officers who are part of the union, he said. SBI employs around 2.3 lakh staff.
A writ was filed by his association in the end of September. A separate writ was filed by the All India State Bank Officers' Federation. The Madras High Court stayed the SBI move.
But then, only the Chennai circle implemented the order, Franco said. A contempt petition was filed on September 30, the day Chaudhuri was retiring. Given this, he was given permission to appear in person on October 10.
SBI's move to discontinue the check-off facility, effected during the term of its just-retired chairman Pratip Chaudhuri, was seen as a way to quell trade union activities.
The High Court verdict was closely watched as an order supporting the axing of the facility could have made similar trade union arrangements elsewhere vulnerable.
"The withdrawal of this facility would have been a big blow to the union, and could have had major implications," said R Vaigai, a senior lawyer who appeared for the All-India SBI Officers' Federation, which appealed against the SBI move.
Ranjit Goswami, SBI's chief general manager for human resources, was not available for comment. Chaudhuri could also not be reached for his view.
The check-off facility works this way: based on a specific written request of an employee, the bank management deducts the monthly subscription (it varies from Rs 150 to Rs 200, depending on the circle) from the salary, payable to the union named by the employee.
SBI was doing this on salary day, which is the twenty-fifth of every month. The facility, which has been extended to the officers associations since 1970, was withdrawn by Chaudhuri.
Instead , members of the union were asked to pay the fee individually. Thomas Franco, general secretary of the Chennai circle of the officers' association, said the money thus collected is important to sustain the day-to-day operations of the union. There are 80,000 officers who are part of the union, he said. SBI employs around 2.3 lakh staff.
A writ was filed by his association in the end of September. A separate writ was filed by the All India State Bank Officers' Federation. The Madras High Court stayed the SBI move.
But then, only the Chennai circle implemented the order, Franco said. A contempt petition was filed on September 30, the day Chaudhuri was retiring. Given this, he was given permission to appear in person on October 10.
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