Hyderabad: The Hyderabad High Court has paved the way for merger of employees working in associate banks with the State Bank of India by vacating the stay granted on April 13, 2017 directing the SBI chairperson not to finalise options given by officers working in the associate banks till June 15.
Justice M.S. Ramachandra Rao, while disposing of the plea by Associate Bank Officer Association and other officers of the associate banks, vacated the stay order.
The petitioners questioned the orders issued by the finance ministry and the SBI Corporate Centre on February 22, 2017 acquiring subsidiary banks, including the State Banks of Bikaner, Hyderabad, Travancore and Patiala, and also a letter issued on March 29, 2017 directing officers and employees to give their options on working with the SBI.
The petitioners submitted that the option letter created confusion among the officers and employees working in the associate banks.
They contended that the SBI cannot seek options from the petitioners without giving clarity regarding the working hours, pension schemes, leaves and other service conditions and also without clarifying whether the conditions of the associate banks would continue or the service conditions of the SBI staff will made applicable to officers and employees of the associate banks after the acquisition.
In its counter-affidavit, the SBI contended that there was no element of discrimination and arbitrariness as alleged by the petitioners. It said that a comprehensive list of benefits-perks available to SBI staff was separately provided by the SBI to all the staff of associate banks before the effective date.
The SBI said a majority of the officers and staff of the associated banks have already submitted their options.
While disposing of the plea, the judge directed the SBI to provide an opportunity to the petitioner association to discuss and negotiate with regards to their grievances.
