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SBI’s merger: Unions cry foul, will discuss impact today
MUMBAI: Banking employees unions have criticised the Cabinet approval for the merger of SBI with its five associate banks, and have threatened action, including
MUMBAI: Banking employees unions have criticised the Cabinet approval for the merger of SBI with its five associate banks, and have threatened action, including strikes, on fears that the move may result in job losses. Office bearers of all unions associated with SBI and its associates are meeting on Thursday to discuss the next step against the approved merger.
“India does not need mergers or big banks,” said CH Venkatachalam, general secretary, All India Bank Employees’ Association. “What happened to Lehman Brothers... Our country needs expansion, not consolidation. This is an unwarranted decision in the name of reforms. There are many service conditions available with the associates that may not be available with SBI.”
Retirement benefits and allowances were different at the parent SBI, he added. “There is limited gratuity, a ceiling on pension to employees, less employee transferability in associate banks. This will be done away with and the number of work hours is more in SBI than in the associates… all this would take away the benefits for associate banks’ employees.”
On May 20, around 45,000 employees, including clerical and subordinate staff of the five associates, had gone on a day-long nationwide strike, protesting against the merger.
