AIBEA Challenges Govt. Directive on Bank Employee Performance Review and Premature Retirement

The All India Bank Employees’ Association (AIBEA) has expressed its opposition to a government directive requiring Public Sector Banks(PSBs) to conduct periodic performance reviews that could force the premature retirement of employees. Issued by the Department of Financial Services (DFS), Ministry of Finance, the directive targets employees who are deemed underperforming. AIBEA has termed the move as a threat to job security and intimidation of the banking workforce, calling on its members to stand firm against such measures.

Govt. Directive to PSBs

The circular, dated 27 October 2024, from AIBEA General Secretary C.H. Venkatachalam, reveals that the directive applies to officers and clerks at specific age and service milestones. For officers in the State Bank of India (SBI), reviews will occur at the age of 50 or after 25 years of service, whereas officers in other nationalised banks will be reviewed at the age of 55 or after 30 years of service. Clerical and sub-staff categories at SBI will be reviewed at 58 years and above, while similar reviews for staff in other nationalised banks will start at 57 years.

According to the government directive, employees falling short of management's performance expectations, could be forced to retire prematurely "in public interest." Officers and clerical staff could be issued three-month and two-month notices respectively, or equivalent pay in lieu of notice if deemed underperforming.

AIBEA's Response and Escalating Hostility Towards Bankers

AIBEA has condemned the government’s directive as "provocative and intimidating," describing it as an attack on bank employees' job security. The association asserts that existing service regulations, such as the Bipartite Settlements, already have provisions to take action against the employees or officers wherever warranted. AIBEA argues that this new directive is an unnecessary layer that could destabilise the morale and sense of security among bank employees.

The circular also highlights existing challenges faced by employees due to staffing shortages and the high demands of their roles. AIBEA’s circular emphasises that these pressures are compounded by targets and performance evaluations, which often lead to stress and strain on work-life balance.

The circular also points to the call by United Forum of Bank Unions (UFBU) Maharashtra unit for a strike on 16 November, 2024. AIBEA supports this agitation aimed at resisting increasing attacks on bank staff in the state and heightened pressures by customers, borrowers, and political groups. 

The circular further urges AIBEA members to prepare for agitation and resistance to protect job security. The circular assures AIBEA members that the matter will be discussed further with UFBU to devise a strategy for addressing the review process stipulated in the government directive.

AIBEA's stance highlights the growing tensions between the government and bank employee unions over job security in the banking sector. The association views the government directive as a serious threat to employee stability, advocating for unity and readiness among its members to resist any adverse effects of the new review policy.