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All India bank strike on 22nd October- Here’s how the sector will be impacted

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All India bank strike on 22nd October- Here’s how the sector will be impacted

Bank strikes are always a serious jolt for the entire sector and customers in particular. Delivery of banking services may be affected on the 22nd of October, 2019, on account of the all-India bank strike. This strike has been called by two big bank unions, namely the AIBEA (All India Bank Employees Association) and BEFI (Bank Employees Federation of India) who will be protesting against the drop in deposit rates and also the proposed banking mergers in the future.

State Bank of India (SBI) has already confirmed that the impact of the bank strike will be minimal at its branches since most employees do not hold membership of any of these two unions. Other entities such as Syndicate Bank and Bank of Maharashtra have already stated that they are concerned about the overall impact of the strike and delivery of banking solutions.

More about the strike

Syndicate Bank has already released its official statement, saying that it will be taking all steps necessary for ensuring seamless operation of its branches on the day of the strike, i.e. 22nd October, 2019. However, in the event of the final materialization of the strike, normal functioning of Syndicate Bank offices or branches may be hampered. The 7 other banking unions apart from the two mentioned previously, which comprises of four officers’ unions and three employee’s unions, have not been made a part of this call for a strike.

They comprise the United Forum of Bank Unions together with the AIBEA and BEFI. SBI has added that the membership of its employees in the unions taking part in the strike is really low and hence the impact should be negligible. AIBEA and BEFI have issued statements, protesting against the outsourcing of the perennial and regular banking jobs, upcoming privatization proposals for the banking industry and also lower recruitment of sub-staff and clerical staff. They have also asked for stringent measures to ensure faster recovery of growing bad loans.

The officers’ unions had called for an all-India two-day strike last month on the 26th and 27th of September, 2019. This strike was withdrawn eventually. Bank of Baroda has already issued a warning to customers that normal services may be hampered by this all-India strike.

What else should you know?

SBI is the biggest bank in the country with 22,000+ branches and it has already stated that there will be minimal losses on account of the proposed banking strike for reasons mentioned above. Bank of Baroda has 9,500 branches and is the country’s third biggest branch post its merger with Dena Bank and Vijaya Bank. In its official statement, BoB (Bank of Baroda) has clearly stated that it is taking steps necessary for smooth operations of offices and branches on 22nd October, However, normal functioning may be hampered eventually in case the banking strike manifests itself fully.

A notice has been given to the IBA (Indian Banks’ Association) by the BEFI and AIBEA unions, informing the organization about the bank strike between 6 AM on 22nd October from 6 AM onwards. The strike will be lifted at 6 AM on 23rd October, 2019. The unions are protesting against several factors mentioned above in addition to the proposed banking mergers and other sector reforms. The union has also stated that there should be more job security for banking sector employees while also asking for tougher action against defaulters on loans. The strike that was eventually called off last month was also related to protests on similar aspects. Tomorrow’s strike has also found support from the AITUC (All India Trade Union Congress).

 

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