AIBOC CIRCULAR NO. 164 DATED 23RD DECEMBER 2010

AIBOC issued its circular NO. 164 dated 23.12.2010 on Participative Management: Officer employee Directors on the Boards of Nationalised Banks. We are reproducing the same here for our readers.

Circular No.164                                    Date: 23.12.2010

To All Affiliates /Members

PARTICIPATIVE MANAGEMENT: OFFICER EMPLOYEE DIRECTORS ON THE BOARDS OF NATIONALIZED BANKS:  ATTEMPTS TO DEUNIONISE THE OFFICERS

We have to day addressed a letter to the Chairman, IBA on the captioned subject and a copy of the letter, which is self –explicit, is annexed.

Further developments in this regard will be posted to you.

With greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1452/472/10                                     Date:23.12.2010

The Chairman

Indian Banks’ Association

World Trade Centre

Centre -1, 6^th Floor,

Cuffe  Parade

Mumbai- 400 005

Dear Sir,

PARTICIPATIVE MANAGEMENT: OFFICER EMPLOYEE DIRECTORS ON THE BOARDS OF NATIONALIZED BANKS. ATTEMPTS TO DEUNIONISE THE OFFICERS.

We draw your kind attention to Government guidelines, Notification No.9/10/2001-BO-I dated 04.10.2005 issued by the Ministry of Finance Department of Economic Affairs, Banking Division, Government of India New Delhi, wherein it is indicated that the officers in Scale –IV and above are considered as part of the Top Management and are not expected to be members of the Association of which Scale –I to Scale –III are also members.

We are given to understand that the Officers in SMG Scale IV who are principal office bearers of the Association are not allowed to participate in the structured meetings of the Bank thereby denying an opportunity to such officers to participate in such Meetings, where issues, grievances of all officers of the Bank are discussed to find amicable solutions to the problems.

Not only this, the guidelines are also debarring SMG Scale IV and above who are principle office bearers, from nomination as Directors on the Boards of the Banks, in conformity with the guidelines on the Participative Management. We would like to make it abundantly clear that the officers working in the Banking Industry can be Members of the Trade Union of Officers and there is no bar for the officers in SMG Scale IV and V for participating in Trade Union activities, get elected as Principal Office bearers, participative in the structured meetings with the Management, be nominated to the Board as Officer Employee Director. The Officer’s Service Regulations do not put any restrictions  in this regard. In the past many Banks have nominated officers in SMG Scale IV and V as Officer Employee Directors on the Boards of the Banks. Many Banks have accepted SMG Scale –IV and V as Principal Office Bearers in the Structured  meetings and other forums.

In this background the guidelines mentioned supra issued by the Ministry of Finance are arbitrary, unilateral, ultra vires  the Constitution, which guarantees to every citizen the right to participative in Trade Union activities and get elected as the Principal Office Bearers and also get nominated to the Boards by virtue of being Principal Office bearers of the Association.

We request you to look into this matter and instruct the concerned to withdraw the notification, as otherwise great injustice will be done to the cause of trade union movement of officers in the Banking Industry. By doing this the constitutional provisions and also the spirit of participative management will be upheld.

With best regards and thanking you.

Yours faithfully

Sd/-

(G.D. NADAF)

GENERAL SECRETARY