Union Bank Shares Drop 3.79%: Strike by Joint Forum on 27 September Disrupts Operations in Key Regions

On 27 September 2024, the Joint Forum of Union Bank Unions (JFUBU) called for an all-India strike, which affected Union Bank operations in several regions across India. The strike was aimed at protesting long-standing issues such as recruitment freezes, staff shortages, work-life balance concerns, deviations in transfer policies, and delays in compassionate appointments.

In Pictures: All India Strike by Joint Forum of Union Bank Unions on 27 September

Strike Impact

The strike, which saw significant participation, led to a sharp decline in Union Bank's share value by 3.79%. In states like West Bengal, Odisha, and Kerala, nearly 90% of branches were shut down due to the agitation. The strike disrupted banking services across 10 states, severely impacting day-to-day operations. JFUBU constituents, including AIUBEF, AIUBSF, UBSA, and UBIEU (Delhi), led the strike after other unions, including the All India Union Bank Officers' Federation (AIUBOF) and All India Union Bank Employees' Association (AIUBEA), postponed their action.

Issues Raised by the Joint Forum

The JFUBU strike raised key concerns over the management's inaction on issues such as staffing patterns, recruitment freeze, and violations of the bank’s transfer policies. The unions press for the immediate recruitment of clerks through the IBPS system and the absorption of casual staff into sub-staff positions. Additionally, the unions oppose the introduction of an apprentice system for clerical recruitment, which they believe undermines the job security of permanent employees. Another pressing demand is the earliest issuance of transfer orders in cases where both vacancies and requests exist, ensuring transparency in the processing of transfer applications and the swift implementation of all pending transfer requests.

According to a circular issued by JFUBU, these issues had long been neglected by the bank's management, leading to frustration among employees. The forum also expressed dissatisfaction with delays in addressing the demands of temporary and casual employees.

Binu, All India President of AIUBEF, commented on the strike’s widespread impact, noting the strong participation across key states. "The strike received a warm response from the employees. Particularly in states like Odisha, where even regional offices of Union Bank remained closed on the day of strike. In Kerala, protest demonstrations were held at regional offices, and a huge majority of branches remained closed. In Bengal too, there were significant disruptions in Union Bank’s operations", he told Kanal.

Arnab Sarangi, a young organiser with AIUBEF, expressed his excitement over the unprecedented level of participation. "Honestly, this is the first time I’ve witnessed or organised a strike at an all-India level. The enthusiasm at the grassroots cadre is mesmerizing. Everyone, even the silent comrades, are speaking up against the injustice by actively participating in the strike," he responded to Kanal, reflecting on the growing unity and resolve among Union Bank employees.

Bank’s Response

Union Bank of India had earlier stated in an official communication to SEBI that it anticipated disruptions in some branches and administrative offices due to the strike. However, the bank assured its customers that efforts were being made to mitigate the impact of the protest. Despite the bank’s efforts, the strike caused notable operational slowdowns in several regions.

In a circular released by JFUBU on 27 September, the union described the strike as an "unprecedented success." The forum expressed gratitude to all participating employees and highlighted the unity displayed across the bank’s workforce. Binu, All India President of AIUBEF mentioned that the Joint Forum plans to intensify agitations after the Durga Puja festive season, if management continues to ignore the demands raised.

The 27 September strike underscored long-standing issues within Union Bank, particularly around recruitment and working conditions. With further agitation planned, the situation between the unions and management remains unresolved.