Govt Bank Employees Threaten Indefinite Strike Over Privatization

Privatisation of the state-run banks has forced the bank employees to worry about their jobs.

Though the government has not named any further names but in future many banks like Central Bank of India, Indian Overseas Bank and Bank of Maharashtra could be next in line for privatisation.

This year, Union Finance Minister Nirmala Sitharaman in her Union Budget speech mentioned that the central government would reduce its stake in two public sector banks, apart from IDBI Bank

. 

Will It Affect The Employees?

People who joined government-owned banks with job security in mind believe that while mergers largely did not lead to job losses, privatization will.

In March this year, the finance minister has assured that the bank operation wouldn’t be closed and the interest of the employees will be safeguarded. Issues like salaries, scale, pension would be taken care of.

Devidas Tuljapurkar, convener of the United Forum of Bank Unions (UFBU), an umbrella body of nine bank unions told Mint,

 “Many employees are worried that even if there is no direct retrenchment, there might be large voluntary retirement schemes, pushing people to leave.”

“At the moment, we are going by what the finance minister said a few months ago and awaiting clarity from the government. However, I should mention that in case the scheme is detrimental to employees, we will go on indefinite strike unless such measures are rolled back,” said C.H. Venkatachalam, general secretary of the All India Bank Employees’ Association.

Bank Unions To Organise Strikes

 C.H. Venkatachalam, general secretary, All India Bank Employees’ Association (AIBEA) said,

 “At the moment, we are going by what the finance minister said a few months ago and awaiting clarity from the government. However, I should mention that in case the scheme is detrimental to employees, we will go on indefinite strike unless such measures are rolled back.”

The mergers of public sector banks have been a major concern. The bank unions are likely to put up a stiffer opposition to this privatisation move compared to last time.