The Befi, one of the nine unions grouped under the United Forum of Bank Unions, said the weak banks have not paid arrears under the industry-wide wage revision that came into effect last year.

Of the three, Indian Bank has already announced a VRS and Befi-affiliated Indian Bank Employees Association plans to file its challenge in the court within a week or two. Indian Bank announced its VRS on November 27, and the offer is open up to December 26. According to Befi sources, UBI and Uco will also be taken to court if they propose any VRS. Both banks have stated that they are working out the details of retrenchment plans, and expect to announce their schemes within a month. Befi's main contention is that none of these three banks has cleared arrears although they are implementing the revised scales. While Uco Bank and Indian Bank have made some provisions for arrears payment, UBI has been even unable to that till date.

Befi has questioned how the managements of these three banks will fund their VRS schemes in a situation where they are unable to clear the arrears of their officers and staff following financial pressure. Befi also suspects that the officers and staff who decide to accept the VRS proposals may have to forgo the arrears. It is learnt that Befi, in the proposed legal suits, will also highlight the decisiion to authorise the management of these three banks to finalise the salary and benefits of their employees depending on the banks' performance. Befi had refused to sign the bipartite revised wage agreement on these grounds, although it was signed by other UFBU constituents like All India Bank Officers Confederation, All India Bank Employees Union, etc.