The government decided not to cut down the employee benefits as a part of bank turnaround plan, this made the employee association to sign an MoU with the bank management and administration.
The administration has decided not to reduce the benefits of the bank employees as a part of Bank turnaround plan, without consulting the staff associations. The assurance given by the administration has paved the way for the All India Bank Employees’ Association where they have agreed to sign a contract which says that the employees agreed to work with banks and administration on a recapitalisation plan.
The Centre insisted on the employees for signing the Memorandum of Understanding (MoU) with the administration and the bank management as a prerequisite for pervading the capital into weak banks
According to D Thomas Franco, who is the senior vice president of the All India Bank Officers Confederation said that the administration has insisted the employee association sign the MoU by refusing to part with capital without the agreement.
“We agreed to sign the contract only after the government agreed to a clause that employee allowances would not be revised without consultation with the associations,” said Franco.
The administration has also given the SBI Caps an official order to withdraw the bank-wise action plan for a turnaround.
Franco said that the information has not been shared with the bank employee association and an analysis was going on the performance of each bank over the past 10 years and also asked the Indian Institute of Management-Ahmedabad to come out with an alternative plan for a turnaround. While the IIM-A will come out with a report before the month of April and AIBOC would finalise its proposals by May 10.
He said that everyone knows the problem of loans by the large corporates which are turning into non-performing assets which would not be helpful as it cut downs on the small expenses.
He also added that the feared about the branch and staff rationalisation as proposals to cut costs because in India there is only one bank branch for every 10,000 citizens whereas in Brazil it was 6,000 and 4,000 in the United States.
The association is also making efforts for executing the endorsements made by the parliamentary standing committee on finance to enhance the corporate governance.