Engagement of Apprentices in Banks: Who is the Beneficiary?

Newspaper advertisement and some of the public sector bank’s websites have come out with “Engagement of apprentices in Banks”. The details of the scheme, the number of vacancies, eligibility, schedule of important dates, payment of fees, stipend to be paid to the selected apprentices and other things have come out in the banks’ web pages. This scheme of engaging apprentices is backed by Apprentices Act 1961 and amended from time to time.

The Apprentices Act, 1961 was enacted with the following objectives:

• To regulate and promote the programme of training of apprentices in the industry; and
• To utilise the facilities available in industry for imparting practical training with a view to meeting the requirements of skilled manpower for industry.

This Act was also amended in 2019, which was published in the Gazette of India, Extraordinary, Part II – Section 3 – Sub section (i) dated 25th September 2019, a portion of which reads as “

18(a) every apprentice undergoing apprenticeship training in an establishment shall be a trainee and not a worker;

Some of the Public Sector Banks including State Bank of India, Punjab National Bank, Central Bank of India, UCO Bank and Indian Bank have come out with this scheme wherein a few thousands of apprentices have been engaged are likely to be engaged in each bank.

This is backed by an Act of Parliament. But there is a serious question in the minds of the employees and officers of the banking industry as to whether this scheme will solve the problem of acute shortage of manpower in all the branches and offices? The United Forum of Bank Unions has been in the forefront in demanding adequate recruitment at all levels and more particularly in the workmen cadre. The shortage of manpower is has led to deep stress in bank branches. Tens of bank employees have committed suicide due to work pressure compounded with untold sufferings at the hands of the superiors.

While the move of the banks to engage apprentices is to impart training on banking to the youngsters of our country, the stark reality is how they will be engaged and how training will be imparted to them. Our experiences in almost all the banks in previous years (where student trainees were engaged) was that they were utilised to take on the work of a clerk at branches. Here the purpose of engaging them to impart skill in them is squarely defeated and amounted to exploitation of the services at a cheap rate without any attendant benefit.

Secondly, the awards and settlements that are in vogue in banking industry prohibits the bankers from outsourcing bank jobs that are perennial in nature. It is also felt that to circumvent such settlements and to seek cheap labour from the market, the banks are now tossing the process of apprenticeships. Large scale engagement of apprentices in banks gives only such an impression.

Thirdly, the apprenticeship period is slated to be 12 months, a long period in the life of a youth seeking employment. Even after successful completion of the apprenticeship, there is no guarantee that he /she would be absorbed as a clerk. It is also true that without such a training as apprentice, the youth can take on the competitive examinations to bank jobs and secure it. The purpose of imparting training as apprentice to such youths and making them wait for one year without any tangible benefits is evidently anti-youth.

Fourthly, the banks have stated the stipend to be paid to the successful candidates as apprentices will range between Rs. 10000 – Rs. 15000/- pm basing on the posting in rural / semi-urban / urban / metropolitan. In the absence of guarantee to bank jobs after successful completion of apprenticeship, these employees will be back to square one in the society wandering as job-seekers.

Agni veer in Defence sector is in quandary. Now the bankers are bringing in “Fin Veer” in banks. The future of the youth of our country is being dealt with a lackadaisical manner by the government – bankers combine.

Hope the Government – Bankers combine come up with adequate recruitments in banks and give up this back door entry of engaging apprentices to exploit the unemployed youth.

[The views are personal. This article has been originally published in bankworkersunity ]