Union Bank introduced Employee Feedback System for Clerks and Sub-Staff

Union Bank of India has introduced a Performance Feedback & Review Mechanism for its award staff through Staff Circular No. 8494, dated December 18, 2024. This new system is designed to evaluate the performance of employees in a structured manner. For clerical staff, feedback will be assessed on a 10-point scale, while for sub-staff, evaluation will be conducted based on three key parameters. Immediate reporting officers will provide the initial feedback, which will then undergo a multi-layered review by higher officials within the Bank’s hierarchy.

This mechanism has been made applicable from the second quarter of FY 2024-25, with the feedback collection and review processes already initiated. The Bank has stated that this system aims to enhance employee performance and provide additional training and support where needed.

Union’s Immediate Opposition

The introduction of this mechanism has sparked strong opposition from the union. On the very day the circular was issued, the union promptly communicated its concerns to the Managing Director and CEO via a formal message. Copies of this opposition were also sent to all Executive Directors (EDs) and the Chief General Manager (CGM) of HR.

Subsequently, a detailed letter (Reference No. GS/1/241/24, dated December 18, 2024) was sent to the MD & CEO. The letter outlined the union’s rationale for opposing the mechanism and included a clear demand for its immediate withdrawal. The union emphasized that if the mechanism is imposed despite their objections and is misused, they will resist it through necessary organizational action, which may include protests and other measures.

Concerns Highlighted by the Union

While the Bank has assured that the feedback mechanism will not impact employee promotions, transfers, assignments, or increments, the union remains unconvinced. They argue that the move is heavily influenced by directives from the Department of Financial Services (DFS), Ministry of Finance.

According to the union, the DFS has been pushing banks to implement systems that comply with Bipartite Provisions, specifically those that allow for the premature retirement of employees aged 55 and above if their performance is deemed unsatisfactory. The union views this as an attempt to exert undue influence on the autonomy of the Bank, creating a precedent for unwarranted interventions.

Interaction with Bank Management

Union representatives met with the Bank’s management at the Corporate Office to convey their concerns regarding the unilateral implementation of this mechanism. During the meeting:

• The union voiced its opposition to the system and its potential misuse.
• They demanded the immediate withdrawal of the mechanism, highlighting its negative implications on employee morale and welfare.
• The Bank management reiterated that the mechanism was intended to support skill development and improve performance without any misuse. However, they were non-committal about withdrawing the system.

The union also noted that the management appeared to be under pressure from government directives, which might have influenced their decision to implement this system.

Union’s Call to Action

Given the current situation, the union has issued a set of instructions to its units:

1. Educate Employees: Inform all employees about the details of the mechanism, its purpose, and the union’s opposition.
2. Avoid Undue Pressure: Ensure that employees do not feel demoralized or pressured due to the implementation of this system.
3. Protest Locally: Units are instructed to lodge protests at Regional Office (RO) and Zonal Office levels, raising awareness about the union’s stance.
4. Send Protest Letters: All units are directed to send formal protest letters to the Bank’s management using the prescribed format, with a copy shared with the union via email.

Union’s Stand

The union remains steadfast in its opposition, emphasizing that the mechanism could pave the way for subjective misuse, especially under external pressure from the government. They argue that banks should be allowed to operate autonomously without coercion from the DFS or the Ministry of Finance.

While the Bank has maintained that the system is meant to provide constructive feedback and skill enhancement, the union has made it clear that they will resist any move that undermines employee welfare or autonomy. The union urges all members to stay united and vigilant as they continue their efforts to oppose this mechanism through all available forums.