Banking operations were paralysed for the second consecutive day yesterday on account of the all India strike called by the United Forum of Bank Unions
A member of the Indian Banks Association said the government is not perturbed by the two-day strike, as the ministry of finance feels the issues raised are not important enough to hold the country's banking sector to ransom in this manner.
The ministry of finance, IBA and the members of the nine bank unions (representing 13 lakh employees and officers) are set for a major confrontation as the nine unions meeting in Hyderabad on September 4, are very likely to decide on an indefinite strike after this.
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A UFBU release said the finance minister has refused to meet the representatives of Union for discussions.
It seems the government has adopted a tough stance this time and UFBU is equally determined to make sure that its demands are heard.
The release said that for the first time since insurgency broke out in the Kashmir Valley, the banks in Jammu and Kashmir observed the two-day strike along with the rest of the country. Officers and employees of private sector banks, foreign banks, regional rural banks, co-operative banks and public sector banks observed the strike for the second day yesterday and the banking sector was totally paralysed.
UFBU claimed the strike was total in Calcutta, Delhi, Mumbai, Chennai, Hyderabad, Ahmedabad, Bangalore, Sonepat, Bhubaneswar, Bhopal, Indore and other places. No clearing house operated anywhere. No trades were reported in the foreign exchange market.
Money market dealers said there were a few trades in government bonds for Saturday's value. Clearing of cheques was badly affected for the second day. Bank officials said they were puzzled the union demands seemed to skirt issues normally dear to union members--higher wages and resistance to implementation of new technology. It looks like there is a hidden agenda, said a top executive of a Mumbai-based state-run bank. "Most members are not even aware of the issues involved.
Unions said they are opposed to the move to launch private banks in rural areas as it will undermine the working of state-run banks in rural areas and divert funds away from socially important but less profitable purposes.
The unions may also be trying to prevent an industry move towards individual wage pacts by banks, one private banker said. At present, unions and managements of state-owned banks negotiate an industry-wide wage pact, which is also adopted by several private banks. "Bank managements have recently started to press for individual negotiations with unions," the official said. "This will weaken the unions greatly as they cannot then claim to represent the entire industry."
Union leaders said they were pleased with the success of the strike and preparing for future action. "The strike is total everywhere," Tarakeshwar Chakraborty, spokesman for the Forum of Bank Unions said. He said the leaders of the nine bank unions would meet at the southern city of Hyderabad on September 4 to discuss further actions.