Bank strike: No role in management-staff disputes, RBI to Guj

The Reserve Bank of India on Tuesday told the Gujarat High Court that it has no role to play in disputes between concerned banks and their employees.

The RBI was responding to a PIL seeking the HC's direction to the central bank to direct banks to take action against their employees for joining union-led strikes as it caused great financial damage to the nation and adversely affected consumers.

The RBI told the division bench of Chief Justice Vikram Nath and Justice AJ Shastri that it had no role to play in disputes between banks and their staff, and the issue was not policy-related where it can intervene.

 

It further told court that each bank had its service rules and the RBI had no control over the staff of these lenders.

The matter was adjourned after the lawyer for the employees' union said a meeting was scheduledwith banks to resolve the matter.

The PIL has been filed by seven industry outfits, including Gujarat Traders Federation, and the chambers of commerce and industry of Rajkot, Bhavnagar, Gondal, Sorath, and Central Gujarat, as well as Ahmedabad Automobile Dealers Association.

The PIL sought the court's direction to the RBI "to issue circular or directions to banks to take strict action against employees who go on frequent strikes".

The PIL contended that bank consumers, trade and industry suffered due to the tussle between government and bank employees which led to such strikes.

"The employees of banks can achieve their demands of wage revision, etc. as per the provisions of the law and not by declaring strikes, which cause great financial damage to the nation as a whole and the public at large," they said.

The petitioners were referring to the strikes called by bank unionson January 31 and February 1, followed by a three-day strike from March 11-13, and indefinite strike from April 1, mainly over their demand for wage revision.