The Story of Unrecognised Labour in Banking Sector: Temporary Employees’ Concerns Remain Unaddressed

In India's banking sector, a significant section of the labour force remains unseen, unrecognised, and largely unacknowledged. These are the temporary employees, often referred to as the backbone of the system, yet they exist in a shadowy realm, excluded from official payrolls and deprived of basic employment rights. As the banking community is to enjoy the benefits of the 12th bipartite settlement from the month of April, 2024, the temporary employees and their plea for regularisation and pro-rata wages still remain sidelined. 

Invisible Workforce, Unaccounted Figures

Official records fail to capture the true extent of this workforce, as their employment status is often undocumented. Cash payments are a common mode of wage disbursement, deliberately kept off the books to maintain a veil of invisibility. Consequently, there exists no official tally of the number of temporary employees within the banking sector. Despite this, trade union leaders and industry professionals estimate that every branch employs at least one temporary worker, suggesting a parity between the total number of branches and temporary workers.

Government Denial and Employee Discontent

While the existence of temporary employment in the banking sector is an open secret, the government continues to deny its prevalence. “As per PSBs, there are no temporary employees”, stated Dr. Bhagawat Karad, Minister of State for Finance on 12 December 2023, in response to a question asked by Sandosh Kumar P, a member of Rajya Sabha. This statement refuting the presence of temporary employment within the sector, is a testimony to the government’s approach towards the concerns of temporary workers.

Speaking to Kanal, Nithin(name changed to protect anonymity)- a temporary employee at Union Bank of India in Kerala, voiced the disillusionment felt by many in his position. He expressed disappointment over the lack of progress in negotiations of 12th BPS for regularisation of temporary employees, despite their integral role in the functioning of banks. 

“Although the union government denied the prevalence of temporary employment in public sector banking on record, the minutes of the residual issues of 12th BPS mentions the resolution of the issue. As the representatives of the bank managements, the IBA has vaguely agreed to discuss and consider the regularisation of temporary bank employees, without any concrete step towards a resolution. This is in great contradiction with the government’s position”, he told Kanal. Nithin's words echo the sentiments of countless temporary workers across the country who have long awaited recognition and stability in their employment.

(A glimpse from the Raj Bhavan March organised by BTEF on 19 December 2023) 

BTEF Advocacy and Protests

Bank Temporary Employees Federation (BTEF), a dedicated union for temporary workers affiliated with the Bank Employees Federation of India(BEFI) Kerala unit, has been at the forefront of advocating for the rights of temporary workers. Recent protests, including the massive Raj Bhavan march of 19 December 2023, to the governor's residence raising their demands for regularisation and pro-rata wages. 

After the settlement of the 12th bipartite, the federation organised demonstrations at all district centres across Kerala, seeking extension of the 12th BPS benefits to the temporary staff.

(A protest demonstration organised by BTEF in Ernakulam, Kerala.)

K S Raveendran, General Secretary of BTEF, emphasised the recurring neglect of temporary employees' issues in negotiations between the United Forum of Bank Unions (UFBU) and the Indian Banks' Association (IBA). “Despite being included in the charter of demands submitted by UFBU, the concerns of temporary workers are often sidelined, leaving them in a state of uncertainty”, he told Kanal. 

Legal battles serve as another battleground for the rights of temporary employees. Devidas Tuljapurkar, All India Joint Secretary of the All India Bank Employees Association (AIBEA), highlighted the resistance posed by his organisation against Bank of Maharashtra's attempts to outsource temporary labour. Despite the resistance from AIBEA, the issue remains unresolved, with cases pending before labour tribunals. 

“The shifting landscape of employment practices within banks, from local hiring to outsourcing, reflects broader changes in the Indian labour market. Till 2009, SBI used to directly appoint sub staff. The appointment is now outsourced to a private agency. Canara bank is also moving in this direction”- Tuljapurkar added.    

Core Issues and Disparities

The demands of temporary employees are straightforward and reasonable. They seek regularisation, pro-rata wages and recognition of their indispensable contribution to the banking sector. Pro-rata wages means the equivalent of gross salary of scale-1 or entry level cadre divided by the number of working days in a month. However, the situation varies across different public sector banks (PSBs), with disparities in treatment and acknowledgment.

While some banks like Canara Bank and Bank of Baroda (BOB) have recognized temporary employees, others like Union Bank of India continue to disregard their presence, paying meagre wages under the guise of additional expenses incurred by the bank. The merger of banks has further complicated matters, as seen in the case of BOB, where disparities in wages persist post-merger, among temporary staff appointed directly by BOB and temporary staff appointed by both the merged banks- Vijaya Bank and Dena Bank.

(Protest demonstration in Thrissur, Kerala seeking extension of BPS benefits.)

Bank Jobs Mean Dignity To Them 

K S Raveendran shedded light on the socio-economic backgrounds many among the temporary workers share in common. "Many of our temporary sub staff, predominantly women, hail from marginalised backgrounds and shoulder the responsibility of being sole breadwinners. Despite facing adversity, they choose bank jobs for the dignity it offers. It's imperative to establish a clear criteria for their regularisation now. The inclusion of this in minutes of residual issues of BPS without laying out any criteria, deserves a sceptical introspection in the wake of general elections", he added. 

The plight of temporary employees underscores a broader issue of unrecognised labour and the erosion of workers' rights in the banking sector. While their contributions are indispensable to the functioning of banks, their employment status remains insecure, and their demands unfulfilled. As advocacy groups continue to press for action and legal battles unfold, the fate of temporary employees hangs in the balance, awaiting a resolution that acknowledges their rights and secures their place within the formal workforce.