The Finance Minister of India, Smt. Nirmala Sitharaman, recently stated that the Government of India is planning a merger of Public Sector Banks. Some banks may be merged, and some may be privatized. The banking industry is already experiencing significant uncertainty. The proposal for 5-day banking is still pending with the Government, and banks continue to face acute staff shortages. There were expectations that the Government would provide some relief to bank employees, but the Finance Minister’s recent statement has come as a shock to the banking fraternity.
Amid this turmoil, bank employees are urging their union leaders to call a strike to press for their demands. According to information received by HelloBanker, lakhs of bank employees have appealed to their leaders to announce a strike, as the government appears unwilling to meet their demands. Some people claim that unions are refraining from calling a strike due to immense pressure from the government, while others question why the leaders cannot announce a strike when the entire bank staff supports them.
Today, in this article, we will look back at two of the biggest strikes in Indian banking history: the SBI Strike of 2006 and the more recent PNB Gwalior Protest in 2022. These two protests highlight the significant collective strength of bank employees and their unions. They demonstrate that when employees remain united, the government and bank management are ultimately compelled to address their demands.
First, we will start with the more recent protest: the PNB Gwalior Protest of 2022. That year, the Punjab National Bank Gwalior Circle witnessed a prolonged agitation lasting over 80 days. The All India Punjab National Bank Officers’ Association (AIPNBOA), Gwalior unit, achieved something few could have imagined. Employees from the entire Gwalior Circle gathered every evening for more than 80 days to protest against the circle management. The employees claimed that the management was ill-treating staff and imposing excessive work pressure despite inadequate infrastructure. When the management failed to address their concerns, the employees united under the banner of AIPNBOA.
The protest was led by AIPNBOA Gwalior Circle Secretary Shri Devbrat Singh Sikarwar. He refused to yield to the management and, responding to the employees’ demands, gave the call for protest. Initially, many in the banking fraternity assumed the agitation would end quickly. However, true persistence is what defines leadership, and he continued the protest with determination. During this period, he faced personal and professional attacks. Some close associates distanced themselves, and the management even transferred him in an attempt to weaken the movement. Despite these challenges, he and the employees remained firm and refused to call off the strike.
After more than 80 days, the management finally gave up and accepted the employees’ demands. In addition, the Circle Head was transferred. This was a major victory for AIPNBOA Gwalior and demonstrated that when there is dedication and courage, even the government and bank management are compelled to step back.
The second big strike was in the State Bank of India (SBI) in 2006. On April 3, 2006, more than two lakh employees of the State Bank of India (SBI) went on an indefinite strike across India. They stopped working completely, and no banking services were available in all 9,000 branches of SBI. The main reason for the strike was the demand to revise the pension scheme, which had not changed for many years.
SBI was the first bank in India to introduce a pension scheme for its employees many years ago. Later, the Indian Banks’ Association (IBA) and other banks also introduced pension schemes. Even the Reserve Bank of India (RBI) started a pension plan for its employees. However, over time, the pension benefits for SBI employees did not improve. The employees felt that they were being treated unfairly, despite SBI being India’s largest and most profitable bank. So, they decided to go on strike to make their voices heard.
The government, especially the Finance Ministry, was initially hesitant to accept the demands. Despite discussions with the Labour Minister and Finance Ministry officials, no immediate solution was reached. On April 8, 2006, after intense negotiations between SBI management, employee unions, and senior Finance Ministry officials, a new pension formula was finally agreed upon. This again shows that when you fight for your rights with determination and courage, success eventually follows.
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