Professional Documents
Culture Documents
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1 Introduction
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Since nationalisation of the banking sector in 1969, employment has expanded rapidly with the opening of many new
bank branches. However, recruitment of employees was
stopped after the Reserve Bank of India (RBI) saw signs of
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notes. The constituent unions hold further internal negotiations with the respective bank managements for the remaining aspects of service conditions. Workers negotiate as per Section 2(p) and Section 18(1) of the IDA, 1947 read with Rule 58 of
the Industrial Disputes (Central) Rules, 1957. The job of unions
as institutions is to represent the interests of their members, be
it wages, job profile or mobility. Unions in the banking sector
have also been known to oppose hiring by organisations outside their membership, and hence resist any outsourcing of
work even if it is non-core.
The most important reason for this is the wide disparity in
payments, which results in compromising the interests of their
members in the long run; leading to the conflict of interests of
unions and cost cutting intent of firms while achieving internal and external flexibility. The major cost cutting measures
are technology (Paul et al 2008) and flexibilisation. The latter
is rendered possible due to the lack of choices and reduced
forms of security. Outsourcing serves as a mechanism to maximise flexibility. The income inequality between the regular
and outsourced employees for work of a similar nature is as
high as 4:1; moreover, regulation is nearly nil (Bhowmik
2009). In the process of rendering such rigidities, unions have
been accused of fostering a labour aristocracy (Tzannatos
and Aidt 2006). Yet the concern is that these negotiations
impact fewer and fewer people who are engaged in banking
work because many banks that can opt out of these negotiations
do not send their mandate to the IBA. As such, there is evidence
that bank unions are losing their grounds as managements
have been overriding them in many instances (Khandelwal
2011: 364). In addition, outsourcing is on the rise in the banking sector; this outsourced workforce is seldom represented by
a trade union.
Although the unions claim that there is no political party
affiliation, some linkages are explicit (even today) such as the
Bank Employees Federation of India (BEFI) with the Communist Party of India (Marxist)CPI(M), the Indian National
Bank Employees Congress (INBEC) with the Congress Party
(Mankidy 1997). However, there is no clear indication whether
these political linkages have resulted in sharpening the bargaining power of trade unions; instead, there are cases of splits
within trade unions along political lines (Bhowmik 2009).
Also, given that unions have not got representation in policymaking bodies (Bhowmik 2009), we can broadly say that the
union movement has not been strong.12
Firms have also been increasingly wary of workers rights,
specially the right to collective action because it amounts to
having a parallel power structure and restricts management
decision-making. There is no compulsion for the employers to
enter into collective bargaining. Only 46 of the 89 banks participated in the ninth bipartite settlement (IBA 2010).
subject entails complex social phenomena that are best articulated by using multiple cases, as cases are best suited for
exploratory studies wherein the phenomena being studied are
contemporary and with no control exercised (Yin 2003) as in
that of the present research situation in which there are many
more variables of interest than prefixed data points.
The multiple phenomena being studied are as follows: Trade
unions and their impact on aspects, namely, employment
security, wages, gender and caste-based discrimination, and
organisational efficiencies. For data collection, a triangulation
framework13 was used, as discussed by Creswell (2007) and
reiterated by Tracy (2010) and Denzin (2012). Here, triangulation seeks an in-depth understanding of the facts though
whilst bearing in mind that objective reality is never evident.
Accordingly, multiple people in contrasting positions were
interviewed, and documentary evidence was gathered with
respect to the same aspect/story so as to garner an unbiased
and factual picture of the truth.
Collection and analysis of data were performed in line with
the recommendations of Yin (2003). Data were organised and
categorised based on themes. The validity of the content analysis
was ensured by using the six step process of Neuendorf (2002).
Ethical principles were employed in data collection. Requests were sent to respective people in advance, and their
co-operation for the study was sought. The nature and purpose of study was clearly indicated in all communication.
Meetings were held with prior appointments after assuring the
respondents that all forms of data would be used purely for
academic purposes. Also, the names of individuals and of
organisations were masked to maintain confidentiality wherever the content is not in the public domain. Accordingly, the
transcripts were shown to the respondents for reconfirmation
before arriving at the final compilation.
3 Research Design
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Taking cues from Oswald (1982), the likelihood of a strong union movement or employee collectives in the banking industry
is bleak as the degree of risk aversion for workers and junior
management is high, financial products are now very price
sensitive, there is surplus labour supply and purely technologydriven processes. On the other hand, there has been a long
period of union activism in the banking industry. Olson (1971)
suggests that groups in non-market situations are inclusive
groups whose supply of collective goods would increase with
group expansion. If we consider labour unions as non-market
groups, then it follows that the veteran bank unions which still
exist in the nationalised banks and some old foreign and
Indian private banks, should expand their membership to
maximise collective benefits. This phenomenon was observed
in the following theme.
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Taking cues from Olson (1971), we may consider employee collectives as inclusive groups within which there exist exclusive
groups who try to maximise their benefits by alienating others. But, this is the reverse of the strategies propounded for
successful organising; on the lines of representation and participation of members (Bronfenbrenner and Warren 2007). In
this theme, the caste based rift within and in between the
Indian banking trade unions and other employee collectives;
as well as how the divide serves as an impediment to collective
good, is highlighted.
In 1995, Kanha Gedam joined the Collective Bank (an old
PSB) as a clerk and participated actively in the trade union
Economic & Political Weekly
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% for SC
% for ST
% for SEBC*
(wef 1993)
15
7 1/2
27
16 2/3
7 1/2
26 5/6
15
7 1/2
Nil
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from a higher component of fi xed pay to incentive-based pay (in the BFSI sector, the proportion of fixed to variable component of pay is
60:40) and temporal flexibility through a higher number of working hours. Numerical flexibility is exercised through mechanisms such as
outsourcing of work defined as non-core activities or unskilled repetitive work is prevalent in
the banking sector since 2004 when the
Reserve Bank of India issued permission and
guidelines for the same. Functional flexibility
is positively co-related with the firm performance, but numerical flexibility has a negative
impact on performance (Arvanitis 2005: 997).
The skill-bias hypothesis states that a more
rapid pace of technological change in a sector
generates a greater demand for education and
training of the sectoral workforce (Mincer
1996).
Retention cost is the sum total of many expenses like training and skill upgradation, annual
increments and promotions, financing long
leaves like sabbaticals, maternity leave in case
of women (there is a verbal understanding that
it would not be claimed before the expiry of a
certain period after joining; generally two
years), statutory social security benefits (for
examplegratuity, which has to be given to an
employee if he/she has served for more than
five years), etc.
Here new banks implies banks established
after 1991the time of the issue of fresh bank
licences. Accordingly, Old banks implies
banks established before 1966the time of the
first industrywide bipartite settlement. No banks
were established between 1966 and 1991.
The consolidated figures for all nationalised
banks reflect that there was only one woman in
Scale VIII and Scale IX put together and mere
175 women were heads of functional departments (Treasury, Risk Management, etc). Assessing the percentage of women for different
cadres, we understand that it is highest for
clerks (29%). In the officers category, the percentage of women is highest for Scale I (20%)
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10
11
12
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77
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oneunion density as understood by OECD,
that is, the percentage of union members in the
wage/salaried workforce. Twounion influence on socio-economic issues like inequality,
inflation and unemployment. The Indian union
movement is not strong on both counts with
union density at 1% and having had no pro-labour influnce on socio-economic factors like
informalisation, privatisation, etc.
13 Triangulating data sourcesa means for
seeking convergence across qualitative and
quantitative methodswas born (Jick 1979).
By the early 1990s, the idea of mixing moved
from seeking convergence to actually integrating or connecting the quantitative and
qualitative data (Creswell 2009: 14).
Triangulation in qualitative research assumes
that if two or more sources of data, theoretical
frameworks, types of data collected or researchers converge on the same conclusion,
then the conclusion is more credible. Put another way, findings may be judged valid when
different and contrasting methods of data collection yield identical findings on the same research subjects; a case of replication within the
same setting. The concept of triangulation
emerged within realist paradigms that aimed
to rid research of subjective bias. The concept
assumes a single reality (or point on the map)
to be known (Tracy 2010: 843).
...qualitative research is inherently multimethod in focus. In its original forms, triangulation referred only to the use of multiple forms
of qualitative research methods, not the combination of quantitative and qualitative methods.... The use of multiple methods, or triangulation, reflects an attempt to secure an in-depth
understanding of the phenomenon in question.... Triangulation is not a tool or a strategy
14
15
16
17
union elections in Indus absence. A male counterpart, also a management favourite; hurled a
volley of abuses on them. The women filed a
written complaint against this man. An officer
had witnessed the incident and recounted the
same to the management. The management immediately got this witness transferred to another city on an increment. In the absence of
the witness, the women were asked not only to
withdraw their complaint but to give in writing
that no such incident had taken place. This
critically assesses managements anti-labour
and anti-women practices.
18 Scavenging here implies cleaning urine pots
and wash basins. In India, this job is done only
by SCs and STs. On record, there are internal
agreements between banks and unions to provide wages for such work on a minimal piece
rate basis. In many bank branches, a couple of
generations have continued in the same trade
with no upward, social or economic mobility.
19 These welfare associations were motivated
by the Dalit Panther movement initiated by
writer and human rights activist, Namdeo
Dhasal. In turn, this movement was inspired
by the Black Panther, Afro-American movement in the United States. Raja Dhale and
Arun Kamble were other prominent Dalit
Panther leaders. This movement comprised
young SC men. Dalit Panther was regarded
close to a revolution as it was different from
the previous dalit movements and was hard
lined and aggressive. But the movement began to fragment in the early 1980s on idelogical and political lines, and hence could not be
widened.
20 Pay scales of officers in PSBs are given in slabs
designated as Scale I (junior-most) to Scale VII
(senior-most), beyond scale VII are executives.
CONTEMPORARY ISSUES
Alok Sheel
T T Ram Mohan
Dilip M Nachane
Rohit Azad
Vineet Kohli
Calm before the Storm?: Indias Relative Stability amidst Emerging Market Turmoil
Capital Account Management in India
Parthapratim Pal
Abhijit Sen Gupta, Rajeswari Sengupta
ISSUES IN BANKING
Amaresh Samantaraya
Mandira Sarma, Anjali Prashad
Saibal Ghosh, D Vinod
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SPECIAL ARTICLE
21 Upper castes in India are predominantly vegetarians, and even if they consume non-vegetarian food, it is not common knowledge, mainly
because of religious reasons.
22 There have been countrywide developments
on reservation in selection-based promotions.
In 1992, the Supreme Court held that reservations in promotions were unconstitutional, in
the case of Indira Sawhney v Union of India. In
1995, Article 16(4A) was inserted in the Constitution, which limited reservation in promotion
to the subjective view of the state on adequacy
of representation. In 2006, the Supreme Court
upheld the constitutional validity of the
amendment vide the case of M Nagraj v Union
of India subjected to the following:
(i) Backwardness of the SCST group
(ii) Inadequacy of representation and
(iii) Efficiency of administration.
In 2012, the central government introduced a
bill to declare that all SC and ST groups notified
in the Constitution shall be deemed to be backward. The provision of this bill also overrides the
parameter of efficiency in administration. As of
February 2015, this bill (177th amendment to the
Constitution) has been passed in the Rajya Sabha and awaits approval in the Lok Sabha.
23 In times of crises, the entities of the finance
industry plummet faster as compared to those
in other corporates as their value creation and
value destruction are much more rapid (Rajan
and Zingales, The Dark Side of Finance, 2014,
p 94). Also, it is well known that banks are vital
in any economy.
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