DFS lashes out at PSBs for violating various Acts

All India Bank Employees Association (AIBEA) had taken up the issue of the increasing trend of violation of provisions of important labour laws like Industrial Dispute Act and Trade Unions Act besides provisions of Bipartite settlement by various bank managements

Mumbai: The Union Finance Ministry has come down heavily upon state-run banks for violation of Industrial Dispute Act and Trade Unions Act by them.

Banks have been strictly advised by the Department of Financial Services (DFS) of the Union Finance Ministry to ensure compliance of the provisions of Industrial Dispute Act, 1972 and Trade Unions Act, 1926 as applicable to banks. Bizz Buzz has seen the copy of the letter issued by the DFS, dated November 28.

It is to be noted that the All India Bank Employees Association (AIBEA) had taken up the issue of the increasing trend of violation of provisions of important labour laws like Industrial Dispute Act and Trade Unions Act besides provisions of Bipartite settlement by various bank managements. The association had even given a call for nationwide strike on banks on November 19.

It was against the backdrop of the Chief Labour Commissioner (CLC) and the Finance Ministry's assurance given to the trade unions of issuance of necessary instructions to banks.

Talking to Bizz Buzz, Trilok Singh, general secretary, General Insurance Employees All India Association (GIEAIA), says, "General insurance employees all India association strongly feels that Industrial Dispute Act and Trade Union act should be implemented in its true sense and severe punishment should be announced for the violation of Trade Union Act."

Moreover, the CLC had advised the DFS also to issue appropriate directions to all the banks in regard to compliance to the labour laws, in particular the ID Act, 1947 and the Trade Union Act, 1926 by the management of the banks.

"Based on this, the DFS has sent its communication dated November 28 to chairmen/MDs of all public sector banks in this connection," says AIBEA general secretary, CH Venkatachalam.