CSB Bank Employees Denied 11th Bipartite Settlement; Agitations Planned Against Apathy of Management

The United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) signed the 12th bipartite settlement during the first week of December. The final agreement is to be arrived at within 180 days, much to the relief of the bank employees.

However, the employees of the Kerala-based 100-year-old CSB Bank, formerly Catholic Syrian Bank, are still drawing wages as per the 10th Bipartite settlement. The bank management has refused to implement the 11th bipartite settlement and did not even submit the mandate for the recently concluded settlement. The CSB withdrew from the industrial mandate for wage revision after the infusion of foreign funds from Canada-based Fairfax after 2018.

The CSB Staff Federation (CSBSF) has opposed the management decision to withdraw from the IBA framework and its plan to implement the bank-based settlement. The federation has raised concerns over the appointment of staff at fixed wages, without social security measures, and more importantly, fear of job loss.

The infusion of foreign direct investment (FDI) in the CSB has had a telling effect on the rights of the employees within a short span of five years, including “vindictive” action against protesting employees, prolonged working hours, and lack of social welfare measures.

‘IMPACT OF PRIVATISATION’

The CSB, with 704 branches manned by around 6,800 employees, is one of the oldest banks based in Kerala. After the infusion of FDI in the bank, the policies have changed only to add to the troubles of the employees.

The 11th bipartite settlement signed between IBA and UFBU in November 2020, effective from November 1, 2017, to October 31, 2022, is yet to be implemented by the management. While all the employees of the 29 banks represented by the IBA are drawing wages as per this settlement, the CSB employees are paid much less as per the earlier settlement.

“The management of CSB is refusing to implement the industrial-level settlement for wage revision of the employees. There has been no wage revision for almost 10 years now. Such cruelty has not been carried out by any other organisation in the sector,” a leader of the federation told NewsClick on condition of anonymity.

The CSBSF has called upon the staff of the bank to gear up for a sustained struggle against the apathy of the management.

Referring to the change in the approach of the bank management after the FDI from the Canada-based organisation, the leaders said, “The bank is resorting to the marginal rate of technical substitution (MRTS) to increase their profit at the cost of reduced wage for the employees. Since 2015, the wages have been stagnant for the staff, with no change in dearness allowance and increment of basic salary.”

‘INTERNAL SETTLEMENT DETRIMENTAL’

The bank is accused of pushing for an internal settlement for wage revision, in place of the industrial-level settlement. The CSBSF cites the bitter experience of the staff of DBS Bank, formerly Lakshmi Vilas Bank (LVB), for their rejection of an internal settlement.

“The internal agreement at DBS bank is nothing but horrible. Such an arrangement will further snatch away whatever rights we have at the CSB. Our primary demand is the continuation of the bank in the industrial settlement to ensure the protection of our rights,” the leader of the federation said.

Besides, the bank is accused of recruiting staff under the cost-to-company (CTC) model, leading to consolidated wages without DA and other welfare measures. “The bank is now appointing staff under the officer category, but with a salary around Rs 20,000. This is the cruel reality of privatisation, which is being implemented across banks in the country. The bank seems to desire 100% CTC staff to accumulate more profit,” the CSBSF leaders said.

The employees of the CSB Bank are just reconciling following the “vindictive actions of the management” for the past couple of years, including the termination of 17 employees, which is now settled, and the issue of show cause notices for flimsy reasons.