Why have over nine lakh public sector bank employees gone on a two-day strike across the country

Close to nine lakh employees of various state-run banks will go on a two-day nation-wide strike beginning Thursday to protest against the government’s move to privatise two public sector lenders. Most of the banks, including State Bank of India (SBI), have already cautioned their customers about the strike’s possible impact on banking operations like cheque clearance and fund transfer. Here’s everything you need to know about it: The legislation The uproar began ever since the government had in its Budget 2021-22 announced its intent to take up privatisation of two public sector banks (PSBs) during the year. In line with it, the government intends to introduce the Banking Laws (Amendment) Bill, 2021, in the ongoing winter session of Parliament. Replying to a question on Monday, Finance Minister Nirmala Sitharaman said: “Consideration of various issues related to disinvestment, which inter alia, include selection of the bank(s) is entrusted to the Cabinet committee designated for this purpose. Decision by the Cabinet committee concerned for privatisation of PSBs has not been taken in this regard.” What is known so far According to reports, Niti Aayog has already recommended the sell-off of Indian Overseas Bank and Central Bank of India to the core group of secretaries on disinvestment, headed by the Cabinet secretary. This core group will send its recommendation to the alternative mechanism (AM), headed by the finance minister, for its approval. Finally, it will be cleared by the Cabinet. The new Bill proposes to “effect amendments in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 and incidental amendments to Banking Regulation Act, 1949 in the context of Union Budget announcement 2021 regarding privatisation of two public sector banks”. These laws had led to the nationalisation of banks, so relevant provisions of these laws have to be changed to pave the way for the privatisation. The resistance The two-day strike on 16 and 17 December has been called by the United Forum of Bank Unions (UFBU). It is an umbrella body of nine unions, including All India Bank Officers’ Confederation (AIBOC), All India Bank Employees Association (AIBEA) and National Organisation of Bank Workers (NOBW). A conciliation meeting before the additional chief labour commissioner on Wednesday failed, so unions are going ahead with their planned strike, AIBOC General Secretary Soumya Datta said. AIBEA General Secretary C H Venkatachalam said representatives of unions, Indian Banks’ Association and finance ministry participated in the conciliation meeting. “We reiterated our stand that if the government would assure that the Bank Privatisation Bill (Banking Laws Amendment Bill, 2021) would not be tabled during this session of the Parliament, we would be inclined to reconsider the strike but the government could not give any such assurance to us,” Venkatachalam said. Unions tried their best to avert the strike to avoid inconvenience to public but the government was not forthcoming, he said, adding that the strike has been called to defend and preserve PSBs. UFBU’s Convenor (Maharashtra) Devidas Tuljapurkar said around nine lakh bank employees and officers from various public sector banks, old generation private sector banks and regional rural banks will be participating in the strike. Public sector banks have always been at the forefront in implementation of various government schemes, including demonetisation, Jan-Dhan Yojana, social sector insurance schemes and Mudra schemes, he told reporters on Wednesday. He claimed that if PSBs are privatised, then bank branches in rural and backward regions will be closed and implementation of all the government schemes meant for socially and economically weaker sections will get affected. Tuljapurkar said bank employees right from sweepers to senior executives in scale five will observe the two-day strike and protests would be held across the country. In Maharashtra, around 60,000 bank staffers will go on strike. Supporters of the strike Rajasthan Bank employees in Rajasthan will participate in the nationwide strike to protest on the call of the United Forum of Bank Unions. The forum’s state convener Mahesh Mishra said 25,000 officers and employees working in over 4,000 branches of the public sector banks will participate in the strike in the state. Tamil Nadu The DMK in Tamil Nadu on Wednesday extended support to the two-day nationwide strike. Party general secretary and state minister Durai Murugan wished the strike success and announced his party’s “total support” to the protest in which close to nine lakh employees of various State-run banks would participate. Goa Goa Bank Employees Association has announced that they will extend support to the nationwide bank officials’ strike on 16-17 December. Madhya Pradesh The members of All India Insurance Employees’ Union, Bhopal, have extended support to the bank strike. Bhopal divisional general secretary Mukesh Bhadoriya has said the union has announced a unity protest by Life Insurance Corporation staffers and the staffers of all insurance companies on the first day during lunch hour in support of bankers, according to a report by Free Press Journal. Maharashtra In Maharashtra, around 60,000 bank staffers will go on strike. Jammu and Kashmir Northern Zone Insurance Employees’ Association (NZIEA) Srinagar Divisional Committee representing LIC employees of Jammu and Kashmir have extended their support to the strike. “NZIEA Srinagar Division supports the two-day strike of the bank employees and officers and calls upon insurance employees in LIC in all its units in Jammu and Kashmir to hold solidarity demonstrations during lunch recess on the first day of the bank strike i.e. on 16th December 2021”, Pawan Gupta, divisional secretary NZIEA Srinagar division, said. 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