Talks between Indian Banks? Association (IBA) and trade unions, aimed at ironing out differences over critical issues, have failed.
Although two rounds of discussions have already taken place between the two parties on issues like provision of pension benefits to all bank employees, resumption of compassionate recruitment, ban on outsourcing of banking activities and consolidation of banks, no major consensus has emerged. The next meeting is scheduled to be held next week.
The government had earlier said that the two parties should meet and chalk out a strategy within three months. Union Forum of Bank Unions convenor CH Venkatachalam however told FE that there was still time left to strike a consensus. A concrete plan on these issues would have to be submitted to the government by May-end or June beginning. At present, 2 lakh employees are under the provident fund net. The unions have said that the government must make another offer to employees in PSU banks to opt for pension benefits in lieu of provident fund. The 27 PSU banks have about 7 lakh employee.
Trade unions have already threatened to go on a nation-wide strike in case the issues are not sorted out. They have also come out strongly against mergers in the banking sector. Notably, the proposed merger plan between the State Bank of India and the State Bank of Saurashtra has been put on hold. The Union Cabinet is yet to give its nod to the proposal.
Bankers said that with competition hotting up in the industry, there is little room for PSU banks to go in for frequent strikes.
The total deposit base of the PSU banks, as on March 2007, was Rs 19,50,845 crore while advances were at Rs 13,77,652 crore. The total paid up capital of the PSU banks is estimated at Rs 11,691 crore.