The megabank merger plan to consolidate as many as 10 public quarter banks into four huge entities may not face submitting merger Human Resources (HR)-associated issues if the Finance Ministry has its way.
To smooth the mixing and deal with HR-associated matters flagged by way of employees and their associations/unions, the Finance Ministry has directed the concerned banks to constitute a joint committee of Executive Directors in the rate of HR to look into the issues concerned. The joint committee must be constituted with the approval of the respective forums, stated the Department of Financial Services in the Finance Ministry.
The committee has been tasked to submit suitable pointers to the top control and/or the bank’s board or relevant committee of the board, reliable sources said.
Recently, Finance Secretary Rajiv Kumar had indicated that the Finance Ministry had become highly quality about form a committee comprising all involved to check out the troubles raised by worker unions. Following this, four financial institution officials’ associations had deferred their strike call for September 25-27.
It may be recalled that Finance Minister Nirmala Sitharaman had, in August, announced the mega financial institution merger plan as a part of usual efforts to have financially more potent public region banks that could guide a $five-trillion economic system using 2023. From a level of 27 PSBs in 2017, the variety of such banks after the contemporary consolidation power is proposed to be reduced to 12.
Amalgamations have no longer been new – Vijaya Bank and Dena Bank merged with Bank of Baroda, and State Bank of India took into its fold its subsidiary banks. However, the HR scenario at the floor stage is no longer very easy.
Indifferent remedy
Even six months after the amalgamation came into force on April 1, there are integration problems on the officials’ level within the case of erstwhile Vijaya Bank and Dena Bank, resources stated.
There needs to be the popularity of each Vijaya Bank and Dena Bank official in the ranks of Bank of Baroda tso that they may all now be part of the equal employer. The officials of the smaller banks ought to no longer be treated as second-grade citizens. Things can be exceptional at the pinnacle; you possibly can’t say the same at the floor level functioning. What passed off within the merger of PNB and New Bank of India is now occurring within the case of Bank of Baroda, a banking enterprise observer stated.
In SBI, the HR integration trouble is extreme, with many in State Bank considering the employees in their erstwhile subsidiary banks as 2d-grade citizens. Banking enterprise observers reckon the HR integration undertaking will ultimate at a minimum for five years, even though the employees worried are mostly from the public sector.
