Kerala: BEFI Conventions, Public Awareness Gatherings Highlight Plaguing Issues of Bankers, Impact of Privatisation in Common Public

The Bank Employees Federation of India (BEFI) in Kerala is holding conventions and public awareness gatherings to highlight the pressing issues plaguing the banking sector and the impact of various forms of privatisation on the common people. 

With the business share of Public Sector Banks (PSB) falling from 74% in 2014 to 58% now for various reasons, the reduced permanent workforce in the banking sector and the ever-dragging wage revision talks with the Indian Banks Association (IBA), the challenges continue to affect the bankers severely.

The increasing number of resignations of staff from key PSBs and suicides citing increasing work pressure has frequently been making news, exposing the mounting pressure on the reducing workforce. 

The convention also aims to appraise the bankers and the public about the increasing outsourcing in PSBs and engagement of subsidiaries for day to day operations of banks.

The public awareness gatherings will appraise the general public on the impact of the privatisation being implemented in disguise and the attempted takeover of the cooperative sector by the union government through new legislation through the formation of multi-state cooperative credit societies. 

‘PRIVATISATION IN DISGUISE’

The union government under the Bharatiya Janata Party (BJP) since 2014 has been making attempts to privatise the PSBs, with even a plan to introduce a bill in 2021 put on hold after surmounting pressure from the banking sector and political parties. The United Forum of Bank Union (UFBU) held two strikes in March and December 2021 for 2 days each against the privatisation moves. 

But, despite the opposition, the BEFI has alleged that the union government and bank management are implementing several privatisation moves in the PSBs, including outsourcing and engaging subsidiary companies for managing operations. 

Speaking to Newsclick, Shaju Antony, Kerala unit president of BEFI, said, “Several PSBs including the State Bank of India (SBI) are engaging subsidiary companies for several operations including the sale of buildings of the banks, insurance, credit card among others.”

The SBI has created its own subsidiary, State Bank Operations Support Services Private Limited (SBOSS), to recruit manpower for carrying out permanent jobs by temporary staff. 

“The contract workers are asked to do the regular jobs, sending the permanent employees for tasks including marketing by the PSBs. Scheduled banks like the Federal Bank are resorting to Fixed-Term Employment (FTE) for disbursing gold and agriculture loans”, Antony said. 

Protest held by Bank of Baroda Employees Union, Kerala (BOBEU) in Ernakulam against the outsourcing of currency chests by the bank.

The engagement of business correspondents is another concern raised by the bank employees' unions, though they help in extending services to rural areas without branches. 

Expressing concerns over the increasing number of temporary, contract and outsourced employees, Shaju Antony said, “Including the business correspondents, the number of temporary employees is at least double that of the regular employees in the sector. This practice of temporary, contract and outsourcing should be stopped, and adequate recruitment must be carried out.”

‘DRAGGING WAGE REVISION TALKS, A BETRAYAL’

The dragging of talks for arriving at a settlement of the 12th bipartite settlement is again worrying the bankers. Though the 12th agreement expired in October 2022, no meaningful progress is being made between the UFBU and IBA. 

“There are around 1,17,000 clerical vacancies in the clerical cadre in the banks, but the profit is on the rise. The employees are physically and mentally distressed due to the increasing work pressure and reduced workforce. But, the IBA has been dragging the talks by offering very low hikes”, Antony said. 

Recently, several bank employees, particularly officers, have been quitting their jobs, besides suicides of bankers have been reported across the country. Such incidents point to the increasing workload and insufficient work-life balance. 

During the talks held on November 9, the IBA increased its offer from 15% to 16%, which the UFBU has rejected. The long pending demand of five days of banking is also awaiting approval from the competent authorities. 

“During the previous agreement, the bankers received only a 2.5% load factor in basic salary, while the insurance employees received a hike of 15%. We demand at least an 8-10% hike in the basic salary. Anything less is not acceptable to BEFI,” Shaju added. 

‘PEOPLE GATHERINGS TO EXPLAIN THREATS’

The different forms of privatisation have resulted in a burden to the customers, including a reduction in interest rates for deposits, an increase in loan interest, service charges and penalties.

“We are planning to hold 1,000 people's awareness gatherings to explain about the threats of various privatisation moves of the banks. We will also speak to the people about the threats faced by the cooperative sector from the union government,” Antony added. 

The government of Kerala and political parties have vehemently opposed the formation of the Union Cooperation Ministry and the formation of the multistate cooperative credit societies. 

Antony accused a section of the media in Kerala of propagating negative news about the cooperative sector in the state. “The wrongdoings in a few cooperative banks are unacceptable. But trying to capture the sector from the state list to the centre and the media propaganda is highly condemnable”, he said.