MUMBAI, DEC 28: State Bank of India (SBI) unions today threatened agitation against ``forcible'' Voluntary Retirement Scheme (VRS) and contended this would only increase the burden of the remaining workforce as the bank had already drawn up the branches that will also provide Life Insurance Service. The All India State Bank of India Staff Federation and the All India State Bank of India Officers Federation, which held demonstrations yesterday in various branches all over the country, will chalk out the future course of action in the first week of January, a senior Bank Union leader VK Gupta said. Gupta, who is also the Delhi Convenor of the United Forum of Bank Unions (UFBU), an umbrella body of nine banks unions, said the SBI management was planning to offer VRS to about 10 per cent (over 25,000 employees) of the 2.3 lakh workforce. ``They are propagating the VRS in such a manner that the employees are being compelled to opt for the scheme,'' Gupta alleged, adding that the threat of bringing down the retirement age from 60 years to 58 years is bringing lot of pressure on senior bank officials to consider opting for for the scheme. Once through, the VRS will see over 25,000 - staffers bid adieu to the bank. It is not clear at this point of time whether the associate banks of SBI will also follow suit with their own VRS offerings, but the exodus at the bank will rival the combined VRS response seen in other state-run banks taking the total numbers to a shade over 50,000. Many Indian banks - barring Central Bank - have already announced retirement schemes which are getting a massive response from their employees. The main reasons being the attractive financial package on offer and new employment opportunities in the private sector - especially insurance sector. State-run banks who have already come out with VRS schemes include Bank of India, United bank of India, Punjab National Bank, Bank of Maharashtra, Union Bank of India, Canara Bank, Uco Bank, Syndicate Bank, Indian Bank. Others who are yet to come with a formal VRS are the Central Bank of India and Dena Bank. It may be recalled that banking secretary Devi Dayal had recently stated 25 per cent of staff strength is being sought to be reduced though VRS-offerings. Among foreign banks, Bank of America, Citibank, HSBC, StanChart Grindlays have all come with a VRS. The infusion of fresh funds would, however, be subject to conditions that the weak banks come up with a viable restructuring plan and carry out a manpower planning exercise. Hence, the present rush to offer VRS to employees. Last week, United Bank of India (UBI) announced that it would open its VRS for employees from January 1, 2001 targeting reduction of 10 per cent staff strength. The VRS scheme, which would close on January 31, would put a burden of an estimated Rs 200 crore on the Bank which would be spread over five years. The bank has targeted a 10-12 per cent reduction of its 21,000 employees. The remuneration for those opting for VRS would be given both in cash and bonds.
