The National Confederation of Bank of India Staff Unions (NCBISU) has expressed strong opposition to the recent decision of public sector banks to recruit apprentices instead of conducting regular permanent recruitment. According to the union, this move is a step towards contractual employment, which could weaken job security and affect the rights of regular employees.
In a circular issued on March 1, 2025, NCBISU pointed out that several public sector banks have recently started hiring apprentices under the Apprentices Act, 1961. Following this trend, their bank has also announced the engagement of 400 apprentices across the country. However, the union believes that this decision will have serious negative implications for employees and the banking sector as a whole.
Concerns Over Low Stipend and Lack of Job Security
One of the major concerns raised by the union is the low monthly stipend offered to apprentices. The stipend has been fixed at Rs 12,000 per month, which the union argues is highly inadequate. In comparison, the starting salary of a Customer Service Associate (CSA) in a public sector bank is approximately Rs 47,000 per month. This huge difference in compensation could lead to dissatisfaction among apprentices, especially when they have to work alongside permanent employees who earn significantly more.
Furthermore, the engagement of apprentices is limited to just one year. After completing the apprenticeship period, these trainees will have no assurance of future employment or priority in recruitment. The union believes that this arrangement offers no real career prospects to the apprentices and could result in exploitation of young workers who seek long-term employment opportunities in the banking sector.
Banking Sector Not Suitable for Apprenticeships
The union has also questioned the suitability of apprenticeships in the banking sector. Traditionally, apprenticeships are designed for technical fields such as manufacturing, where workers receive hands-on training to develop specific skills. However, the banking sector requires professionals with expertise in security, customer service, and financial transactions, which are not well-suited for short-term apprenticeship programs.
Another concern raised is the lack of clarity on who will be responsible for training these apprentices. Banks are already facing a shortage of staff and an increasing workload due to digitalization and automation. With an overburdened workforce, it remains uncertain how these apprentices will receive proper training, and whether they will be able to effectively contribute to banking operations.
Delay in Compassionate Appointments and Staff Shortage
The union has also highlighted another pressing issue: the pending compassionate appointments for the families of deceased employees. According to NCBISU, many families have been waiting for over four years for compassionate appointments due to delays in vacancy declarations. This delay has caused significant hardship for affected families who rely on these job opportunities for financial stability.
In addition, the union claims that many bank branches are currently operating with an insufficient number of subordinate staff, which is affecting the efficiency of banking services. The engagement of apprentices, instead of hiring permanent clerical and subordinate staff, could further worsen this situation.
Call for Nationwide Strike on March 24-25
In response to these concerns, NCBISU has taken a strong stand against the bank’s decision and has lodged an official protest with the management. The union has demanded the immediate withdrawal of the notification for the engagement of apprentices and urged the bank to conduct regular recruitment as per the provisions of existing settlements.
NCBISU, in coordination with the National Confederation of Bank Employees (NCBE) and the United Forum of Bank Unions (UFBU), has announced a two-day nationwide strike on March 24-25, 2025. The strike will focus on multiple demands, including the recruitment of at least 3,500 clerical staff, 4,000 subordinate staff, and armed guards.
The union has called upon all its members to actively participate in the agitation program to ensure that their demands for fair and permanent job opportunities in the banking sector are met. The outcome of this protest could have a significant impact on the future of employment policies in public sector banks.
