Bank Unions Call for Immediate Permanent Recruitment Drive
India’s major bank employee unions are mounting pressure on the government and the Indian Banks’ Association (IBA) to immediately halt the trend of outsourcing and contract staffing, demanding a return to permanent, direct recruitment.
The unions raise serious alarms about the long-term viability of the banking sector’s workforce.
They cite significant staff shortages and mounting workload pressures, especially following the rollout of the new set of Central Labour Codes.
The Core Demands of Bank Employee Unions: Addressing Staff Shortages
The primary concern voiced by organizations like the All India Bank Employees’ Association (AIBEA) and the National Organisation of Bank Workers (NOBW) revolves around critically low staffing levels, especially at the clerical and sub-staff cadres.
Following years of conservative recruitment and the adoption of Voluntary Retirement Schemes (VRS), many public sector banks are operating with skeleton staff.
Unions argue that this shortage directly impacts customer service quality and increases operational risks.
They contend that replacing permanent positions with contract workers—who often lack job security, proper training, and long-term commitment—is detrimental to the institutional memory and core functioning of the banks.
The unions insist that the only sustainable solution is a robust, time-bound, and transparent plan for permanent recruitments to fill the existing vacancies and match the growing business volume.
Impact of New Labour Codes
A significant part of the unions’ current push is tied to the implications of the new Labour Codes, which are consolidating 44 existing Central labour laws into four codes: the Code on Wages, the Code on Industrial Relations, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code.
While intended to simplify regulations and improve working conditions, the unions fear that these codes, particularly concerning industrial relations, may inadvertently make it easier for banks to hire and dismiss contract workers, thus further formalizing precarious employment.
The push for permanent hiring serves as a pre-emptive measure to protect existing statutory benefits and employment rights before the full impact of the new regulatory framework is realized.
The unions are specifically flagging the potential dilution of negotiation power and the loss of social security benefits traditionally associated with permanent public sector employment.
Union Response and Future Action
The unions have collectively called upon the government to recognize banking as a strategic public service requiring a stable and permanent workforce.
They are demanding immediate negotiations with the IBA to establish standardized, secure terms of employment across all public sector banks.
Their planned actions include nationwide demonstrations and the submission of memoranda to the Finance Ministry.
These actions emphasize that employee morale is low and current working conditions are unsustainable.
Bank management prioritizes cost-cutting measures achieved through contractual employment.
In doing so, they overlook the essential contributions of the banking staff, who are often lauded for their pivotal role in implementing government welfare schemes.
The outcome of these negotiations will shape the future employment landscape of India’s vital public banking sector.
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