The IDBI Bank officials have announced a two-day nationwide hunger strike against the bank’s stake sale to Canada’s Faifax, a decision approved by the Cabinet last week. The strike will be observed across the bank’s branches and offices nationwide.
The two-day nationwide hunger strike will be held on November 2 and November 3 to protest the proposed sale of IDBI Bank to Canada-based Fairfax Financial Holdings Group.
The United Forum of IDBI Officers and Employees (UFIOE), comprising the All India IDBI Officers’ Association and the All India Industrial Development Bank Employees’ Association, has issued a strike notice to the bank’s management under the Industrial Relations Code, 2020.
What are their demands?
The forum has demanded that the government halt the proposed sale and acquire at least 6 per cent equity in IDBI Bank, either from Life Insurance Corporation of India (LIC) or through the market, to maintain its shareholding at a minimum of 51 per cent.
It has said that this would honour assurances made in Parliament in December 2003 that the government would maintain majority ownership of the bank.
Further, the forum also sought written statutory assurances that existing service conditions, welfare measures, pension benefits and reservation policies would be protected.
It has demanded the continuation of industry-level wage revisions and pension benefits.
The union has sought an option for existing employees and officers to transfer to public sector banks, with their service, scale, seniority, salary and superannuation benefits protected. It has also demanded the absorption of outsourced and contractual workers employed by IDBI Bank.
The forum has opposed the proposed sale on the grounds that it would affect the bank’s public sector character despite its financial turnaround.
Raises concerns for farmers, small borrowers
On the stake sale of IDBI Bank, the union has also raised concerns about the implications of privatisation for depositors, farmers, small borrowers and employees.
Further, the union also said the bank had supported industrial development and implemented government welfare schemes, including those related to financial inclusion and social security.
It appealed to bank employees, trade unions, customers, depositors and civil society organisations to support its agitation. It said it remained open to dialogue with the government and the bank’s management but warned that the agitation could be intensified, including through a longer or indefinite strike, if its demands remained unresolved.
Finance Ministry Cites Delhi HC Ruling
Union Cabinet last week approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings’ subsidiary for Rs 52,878.08 crore.
The Finance Ministry has defended the Centre’s plan to dilute its stake in IDBI Bank, citing the legislative history of the lender’s restructuring and a 2018 Delhi High Court judgment. In an official statement issued on October 17, the ministry said neither the legislation enacted in 2003 nor the court’s ruling prevented the government from reducing its shareholding.
