Why Bank Strike Is Unavoidable

Why Indefinite Strike BY Bank Staff is Now Necessary Unavoidable and Inevitable?

After 45 Years of Bank Nationalization , Bank Staff have become Slave as They were Before Nationalization

Why indefinite strike by bank employees is unavoidable?

Government understands the language of violence, disturbances in public life and destruction of public property. Bank employees in general are very much simple and devoted workers. Bank employees avoid strike for wage revision as far as possible and believe in dialogue process with IBA. But it is very much painful that clever and flatterer CMDs of banks who represent Indian Bankers Association are willfully ignoring the genuine demands of bank employees and wasted ten months time for nothing . Bank employees on the other hand have patiently tolerated the casual attitude of IBA for last ten months and waiting patiently and peacefully the positive response from IBA members and union leaders.

Wage revision of bank employees is due since November 2012 and the charter of demand was submitted to IBA and Ministry of Finance in July 2012. Government and its representative IBA has been postponing or avoiding even dialogue process for last ten months. It is sad that government understands the importance of any demand only when strikers burns the buses and trains, create road jams, blocks movement of train and what not. This has been seen in the case of strikers of other departments.

Government comes out of hibernation only when huge loss is incurred to exchequer. Ministers and the competent authority or labour commissioner have not understood the gravity of the matter, Genuinity of demand of bank employees, and seriousness of frustration among  bank staff due to delay in wage settlement  even after lapse of ten months after the charter of demand should not be taken lightly by  government of India and the IBA, Indian Banks Association an body which takes part in negotiation with banker's united forum on the issue of wage revision or other relevant demands.

Government has not tried to assess, understand and realize that workload on bank employees have multiplied during last two decades due to almost ban or regulated policy adopted by government on employment in banks during eighties and nineties, large scale removal of employees under voluntary retirement scheme VRS of the year 2000, the continuous natural retirement, dismissal and death of bank employees without fresh recruitment of at least same number of employees. On the contrary wage structure of bank employees has faced continuous erosion in pay despite relentless price rise whereas there has been continuous and disproportionate higher rises in pay of central government and state government employees.

It is known to all that there has been technological upgradation in banks to a large extent during last five to six years. It was also made possible only by the hard labour done by experienced bank employees for more than 12 hours a day. Without disturbing customer service bankers took it a challenge, accepted new technology and converted most of the bank’s branches as CBS branch.

Banks opened thousands of new branches and ATM, introduced E-Banking, Mobile banking, SMS banking, tele-banking and now engaged in serving the unbanked villagers in the name of financial inclusion. Many other customer friendly services have been added for the comfort and satisfaction of central government as well as its customers.

There has been continuous improvement in the services extended by bankers and it will not be an exaggeration to say that it is the only banks run by Government which extends services to the maximum possible satisfaction of its customers even in far flung areas and on the contrary all other department of the government or most of the PSUs have failed to please their customers. Such paradigm shift occurred only due to efficiency exhibited by bank employees without disturbing routine normal works.

After adoption of Core Banking Solution ( called as CBS), Banks has introduced several other non-banking products like Insurance, demat service, share trading, selling of mutual fund products, tax collection, old age pension payment and many other products. It is only bank employees who accept newer and newer challenges and strive hard to please customers. It is unfortunate that bank employees are still in bad taste in corridors of Ministers. During last ten years number of bank staff has come down from 800000 to 700000 whereas number of branches has almost doubled.

It has to be kept in mind that there has been continuous wage erosion of bank employees during last two decades whereas on the contrary there has been quantum jump in the salary of state and central government employees through fifth and sixth pay commission report implementation. Frustration has been increasing among bank employees due to indifferent attitude of IBA and inordinate delay in completion of Xth Bipartite Settlement..

To add fuel to fire media has tarnished the image of bank employees by creating false hype that bankers are high wage islanders. As a matter of fact wage disparity has added much discomfort to bank staff and their families .Indifferent attitude of government has widened to such a large extent that unemployed youth who join services in bank get disappointed in a year or two and constrained to leave the service and to opt for better avenues in private companies. There has been sharp change and reversal in choice and preference of job seekers. Three decades ago fresher used to prefer joining bank service than even IAS and IPS services. Present position is that even fresh graduate and post graduate prefers peon’s job in central services than joining as officer in a bank.

It is worthwhile to mention here that despite low wages and high work load it is banks which have been earning profit continuously and growing in profit year after year. On the contrary most of other businesses run by government are either showing loss or showing fall in profit or there is position of complete stagnation or on the verge of closure. Even companies like BSNL is likely to book loss to the tune of Rs10000/- crore and more. Indian airlines are running in losses in thousands of crores. All oil companies, fertilizer companies and many PSU are in losses and running on the aid and ventilator provided by Government. It is surprising that government had happily increased salary of even loss making companies by 30 to 60% through sixth pay commission on the eve of election just to enhance their vote bank and the same government thinks it fit to ignore genuine demand of 20% wage hike of bank employees on flimsy ground

Government instead of listening to banks argument in favour of their demand for at least 40% wage hike has been postponing dialogue on one plea or the other for ten months It is to kept in mind that bankers are dealing in money and any dilution in honesty, sincerity and devotion of bank employees may cause irreparable damage to intrinsic health of banks. As of now corruption in banks is undoubtedly lower than all other departments of Government and other PSUs. Exodus of quality people may be harmful to banks. It is an open secret that banks have been used by politicians to enlarge their vote banks.

I therefore submit this open letter to IBA, Ministry of Finance, RBI, Prime Minister of India and request all concerned to have a day to day basis dialogue process so that Xth Bipartite settlement is signed amicably without resorting of strike by bank employees.

If delay is not stopped by GOI and IBA in amicable settlement, I have no doubt that bank staff will lose their patience, move on indefinite strike and ultimately boycott Congress Party and UPA in forthcoming General election. Bank employees leave no stone unturned to serve the common men at lowest cost by serving even in rural areas and in critical places. They deserve better treatment for overall growth of the country, for good health of banks and for soundness of Indian economy.

If bank staffs are not given respectable wage hike without much delay, it may have large scale adverse consequences on all economic front and repercussion on social welfare schemes. Congress Party lost election due to its anti-employee and anti bankers’ policy. I am most confident BJP government will understand the gravity of the matter and force IBA to sign an agreement by sitting daily for dialogue with union leaders and agree to wage hike of at least 20%

I am very much confident that learned new Finance Minister Mr. Arun JAITLEY will take necessary steps to ensure signing of wage hike settlement and payment of arrears to bank  staff latest by 31^st October 2014 .