The management of State Bank of India should reconsider the establishment of Special Service Support Services Ltd (SBOSS) as it will lead to outsourcing of core banking activities and consequent risk and involvement of contract labor at cheaper wages, in according to one of them. bank unions.
“We understand that new types of outsourcing are being tried through SBOSS. There are industry-level agreements between IBA (Indian Bankers Association) and Trade Unions regarding the areas that cannot/can be outsourced.
“Attempts to circumvent these norms are unacceptable,” KS Krishna, General Secretary, All India State Bank Employees Association, said in a letter to the bank’s Deputy Director (Human Resources).
Less manpower, more technology
SBI had on August 8 informed shareholders that it has set up a wholly-owned subsidiary SBOSS with a capital investment of ₹ 10 crore to provide support services and Business Correspondent services to bank branches and Commercial Property Credit Centers (RACC) in rural and semi-urban areas. urban areas, as approved by RBl.
“We learn that many functions and tasks currently carried out in the branches are proposed to be transferred to this new company, its structures and systems are less manpower and more technology.
“While the objective is to reduce operational costs (of Personnel), it is understood that the nature of the workforce and employment will be informal and contractual,” Krishna said.
He pointed out that the bank transaction/loan disbursement functions are handled by the permanent and responsible Manpower, Staff and Employees, within the branches and done securely to ensure security and privacy.
“It cannot be jeopardized by external management. Be it money or loans, they must be handled with integrity and security. Fiduciary and confidential obligations owed by the Bank’s Permanent Employees, Officers and Directors under the SBI Act The grips will not be there in the external models,” Krishna said.