Government declares the banking industry as a public utility service for six months till October 21

The banking industry has been declared as a public utility service for six months till October 21, 2020, under the provisions of the Industrial Disputes Act.

Inclusion of banking services into the provisions of the Industrial Disputes Act means that the banking sector would not see any strikes by employees or officers during the operation of the law that started from April 21, 2020.

The department of Financial Services in its circular issued on April 20, 2020, said, the labour and employment ministry through a notification has declared banking industry as a public utility service for six months with effect from April 21, 2020. The notification was issued by the labour ministry on April 17, 2020, against the backdrop of the coronavirus, COVID-19, pandemic which has significantly impacted economic activities.

Unions In Banking Sector

Over a dozen of employees and officers unions are present in the banking sector at present and they enjoy a considerable say in wage negotiations, which the IBA deals with every three years.

Members of IBA: All public sector banks, old generation private sector banks like ICICI Bank, HDFC Bank, Axis Bank and Federal Bank are members of IBA. Apart from this, some of the oldest foreign banks like HSBC, StanChart and Citibank, are also part of it. All of them come under wage settlements and other employee issues that are taken up by IBA.

However, new private sector banks, like IndusInd Bank, Kotak Bank and Yes Bank, are outside the purview of IBA norms.