Banking Operations Come to Halt as Unions Protest Against Proposed Bank Merger

On December 26, banking operations came to a grinding halt as the strike call given by United Forum of Bank Unions (UFBU), an umbrella body of top nine bank unions, generated tremendous response across the country. The strike was called in protest against the government’s move to merge Vijaya Bank and Dena Bank with their larger peer Bank of Baroda. More than 10 lakh officers and workmen took part in the strike.

The unions have been opposing this move since the merger was announced, and they are saying that it will lead to closing of a large number of branches, and customers will face hardships. Talking to Newsclick, Soumya Datta, General Secretary of All India Bank Officers’ Confederation (AIBOC), the largest union under UFBU, said, “AIBOC is of the firm opinion that instead attempting mis-adventures like mergers and amalgamations, the government should focus its attention to identify the reasons for today’s NPA menace in the banks.” He added, “Lack of required urgency is evident as government has not shown any inclination either to publish the names of Wilful Corporate Defaulters or to make Wilful Default a crime.”

Explaining why the unions are opposing the merger, Datta said, “All the alibis raised by the government in justification of the mergers, like ‘economies of scale’, ‘better efficiency’, etc., are all superfluous, baseless arguments and can only be termed as mere jugglery of words.” He explained that if these were true, the earlier merger of the State Bank of India with its associate banks would have generated similar effects. He said that even 21 months after the acquisition, no positive effects can be seen. “The enlarged SBI continuously posted humongous losses and its book of ‘bad debts’ swelled and had closed thousands of branches, in the guise of branch rationalisation directly affecting the customers,” said Datta.

Also Read: Nine Bank Unions on One-day Strike Against Proposed Bank Merger

The unions have also said that the merger will also lead to a decline in job opportunities, youth unemployment, lack of systematic job profiles, along with huge pendency of work processes among the merged banks, and an increase in the amount of non-performing assets.

The unions have expressed their anger at the government’s decision to announce the merger without discussing the matter with them. “This indicates that the government is in a tearing hurry, disregarding all the normal practice. AIBOC has filed a writ in the Delhi High Court challenging the decision to bypass the Parliamentary role in the aspect of mergers. AIBOC has a locus standi in as much as the decision impacts the Public Sector Banks, citizenry and lives and livelihoods of Bank officers thereby violating section Section 19(1)(g) of the Constitution of India,” AIBOC said in a statement.

Datta said, “Looking at the chronology of events, it is hard to miss a conspicuous haste and urgency shown by the government in the matter. It is also clear that a consultative process with the stake-holders to arrive at a consensus is not the preferred ways for the government to take such crucial decisions. It is time the government learns from the past.” He added that keeping with the country’s geography and population, more and more public sector banks are required, but the government is doing the opposite of that.

Also Read: Bank Employees to go on All-India Strike on December 21

The unions have said in a statement that more than 10 lakh officers and employees of the banking sector have embarked upon this battle to safeguard the interests of the citizens of this country and to make sure that their banking needs are protected, and not hurt by the misplaced reforms being made by the government. They have said that this strike will be followed by more agitational programmes, until their demands are met.