Trade Unions - Have they been relevant?

Mr. Shukla comes to office as and when he wants. His train from Ghaziabad reaches Old Delhi, half an hour after the business hours in the bank start. He has the option of taking an earlier train but he doesn’t!

Mr. Sinha, an Associate Vice President in the bank, was a previous member of the Employee’s Union. He left the Union and became a CTC employee of ING Vysya Bank in 2002.

The Vysya Bank Limited (VBL), a 75-year old Andhra Pradesh based bank, was taken over by ING Group of Netherlands in 2002. The bank was restructured in the same year and broken up into four – ING Vysya Bank (IVB), ING Vysya Mutual Fund, ING Vysya Life & ING Vysya Financial Services Ltd.

The Vysya Bank Ltd Employee’s Union saw intense turmoil in this year. ING offered these employees an offer to leave their IBA pay structure and join IVB as a CTC employee. This meant a change in the job profile, hierarchy & EOY performance appraisal. Many people who wanted to move out – walked out of the union – and joined the bank. The rest continued to work under the IBA structure and strengthened the Union.

4 years since the turmoil and IVB is still struggling with issues regarding its employees. Sub-staff like Mr. Shukla do not give importance to work hours! Constant reminders do not deter these stalwarts of The Vysya Bank Ltd Employee’s Union. Also, the Union has boycotted its previous members, who shifted to the CTC structure in 2002. If there is a sub-staff in the branch, under Mr. Sinha, he does not respond to any instructions – complaining – you ‘ditched’ us & now, you face the brunt!

Yes, we have come a long way since the days of Trade Unions! My 2-year experience, as an IVB CTC employee, brought me to closer to the fact that it is imperative to keep the Union happy, if the organisation wants to prosper.

ING Vysya Bank – although one of the pioneers in banking in South India – has not been able to make a nation-wide mark. One of the key issues discussed today in its boardrooms is the unsuccessful transition from VBL to IVB.

Things have come to such levels that the old employees of VBL, who have been in the company for more than 15-20 years, are getting paid less than the new entrants (like me!) & this is creating great rifts in the working environment. There is at least one strike in 2 months by the Union – asking for a pay raise, admission of new entrants on the IBA pay scale structure and many more related issues!

The bank has not been able to show profit in 3 consecutive quarters ever since the take-over! If I may ask Mr. Shukla, what goal is the Union trying to achieve by helping the company not perform? What is the fault of Mr. Sinha if he has chosen performance over persistence & brought glory to the bank?

Whose cause is the Union fighting for – Self or Employees?Whatever the answer – the organisation is suffering!