AIBOC CIRCULAR NO. 96 DATED 29.10.2011

AIBOC issued its circular No. 96 dated 29.10.2011 on the role of trade unions in the banking industry in connection with Dhanalakshmi Bank Officers’ Organisation and the bank management’s view on the functioning of the organisation. We are reproducing the same here for our readers.

CIRCULAR NO.96                                             DATE: 29.10.2011

TO ALL AFFILIATES /MEMBERS

ROLE OF THE TRADE UNIONS IN THE BANKING INDUSTRY - DHANALAKSHMI BANK OFFICERS’ ORGANIZATION - MANAGEMENT VIEW ON THE FUNCTIONING OF THE ORGANIZATION

We have received a copy of the Circular letter issued by the President, Human Resources and Corporate Social Responsibility, Dhanalakshmi Bank, with an intention to send his greetings on the eve of Deepavali to the employees and officers working in the Bank. The communication meant to greet the rank and file across the Bank has been utilized to cry foul against the leadership of the Confederation and also the Dhanalakshmi Bank Officers’ Organisation, an affiliate of the Confederation, stating that, they have been indulging in malicious and vendetta driven campaign against the bank and the organization has been claiming that their members alone are the confirmed officers of the bank.  A number of assurances have been given to the employees that, the Bank would not divide and discriminate its employees, and they have questioned the campaign for merger of Dhanalakshmi Bank with a PSU Bank, as an expression of raising question about the integrity of the employees, etc.,

The Circular is meant to defend the questionable actions of the Management and the performance of the Bank. While the Dhanalakshmi Bank Officers’ Organization and the leadership of Confederation who have a greater stake in the 84 year old Dhanalakshmi Bank, as committed and loyal workers over the last several decades, are finding it most painful when the Bank is drifting in its direction, on account of the new leadership at the top Management level, ignoring the essence and the core values for which the Dhanalakshmi Bank existed all these years through the sweat and blood of thousands and thousands of the employees who worked throughout to build a strong edifice of the Bank. The Dhanalakshmi Bank has its own cultural ethos and known as the mass bank throughout the Kerala State through sustained and dedicated contribution of the members of both the Award Staff as well as Officers’ over the last several decades. They have been witnessing that, the Bank is struggling due to dismal performance of the top management in handling business as well as human resources in the Bank. The Organization has raised several issues both connected with the human resources as well as the business growth of the Bank and have been on continuous struggle over the last several months in order to impress upon the Management about the current issues before the Bank and the need to protect the same from aggressive take over by the corporate houses.

It would have been appropriate for the head of the Human Resources, had he addressed the core issues that have been raised by the Dhanalakshmi Bank Officers’ organization, that is the recruitment of a large number of executives on the basis of the Cost to the Company and attempting to convert the existing permanent officers to accept the same offer of appointment on the basis of “Cost to the Company”. These employees are being offered a hefty compensation in comparison with those who have been serving for years as loyal and permanent employees.  The Organization is questioning the absence of job security and there is nothing wrong in it. An employee, who is always on the tenterhook of removal as per the terms of offer, will not be able to give his best to the institution. It is the primary responsibility of any trade unions to protect the job security and to strengthen the institution. The head office of the Bank is shifted to Mumbai for the convenience of the top executives. This is avoidable additional cost to the Bank.  They visit the Head Office as guests. The HR head has conveniently ignored this aspect. The MDs and CEO’s of bigger old generation Private Sector Banks, in Kerala, are functioning from their head offices situated at Kerala and performing excellently, taking entire staff in to confidence. They are generating good, profit and treating all employees equally. They are not allergic to Association. As regards the assurance of General Manager, that there shall be no discrimination between the employees is farfetched. There is a wide discrimination as regards the compensation now that is being paid to those recruited directly at the executive level as well as on the basis of Cost to the Company in comparison with all those who have been toiling for years in the institution. The HR head himself claims that there shall be assorted benefits although assures of equitable system which cannot co-exist. The Managing Director has crossed all limits and repeating his dictates that, he will not tolerate Unions in the Bank and will not permit officers to form Union/Association. It is unconstitutional dictation, when our Constitution has provided fundamental right to each and every citizen to form Unions/Association. The Management of Dhanalakshmi Bank itself is a member of Association of Bankers. Why are they afraid of Unions/Associations? Because they will expose mismanagement in the interest of the Bank. The Confederation is not an outsider.  We have our affiliate in Dhanalakshmi Bank. We are also shareholders of the Bank.  In fact, we are permanent stakeholders of the Bank. The dismal performance figures of the Bank quoted by us are taken from the Banks balance-sheet only. We are wedded to the principle that, Nation first, Organisation next and Individual last. We cannot compromise this principle for paltry offers. The Management has failed to purchase leaders of DBOO. The undersigned called upon the MD & CEO of the Bank at Mumbai to resolve the impasse. But, MD was very reluctant to establish communication with the DBOO.  The personal ego is paramount.  We also approached the Chairman of the Bank for his indulgence to restore peace in the Bank. All our good intentions were conveniently ignored by them; hence confrontation.

Having seen in the recent past the way some of the Private Banks have gone into the fold of the new generation Private Sector Banks, it is but legitimate for the Confederation to demand merger of Dhanalakshmi Bank with that of a Public Sector Bank in the interest of all the stakeholders. The Confederation continues to maintain this demand of nationalization of all old generation Private Sector Banks and wish to clarify that the Bank should have addressed the issues raised by the Confederation in regard to the various points concerning the performance of the Bank including its results announced in the recent quarters rather than making general and sweeping remarks that the leadership of the Confederation is attempting to tarnish the image of the Bank.

 

We do hope that, the real issues will be addressed in a focused manner and the Management would rather; hold discussions with our affiliate, which is only the majority Officers Organisation having 95% membership in the Bank, instead of issuing provocative communications attacking the leadership of both the Dhanalakshmi Bank Officers Organization as well as the Confederation.

With warm greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY