CHENNAI, Aug 13: Battle lines between the Indian Bank and its minority union have become sharper over the signing of the management-drafted 29-point memorandum (MoU). Sources said the bank plans to go ahead with the pact, despite the Indian Bank Employees' Federation's (IBEF) refusal to sign it. IBEF is an affiliate of the Bank Employees' Federation of India (Befi).

The finance ministry has, reportedly, insisted that the bank personnel, organised and unorganised, sign the MoU as a prelude to the planned capital infusion. The management, however, claims the government has been apprised of its decision.

Uco Bank had, recently, signed a similar memorandum drafted and accepted by employees after which it received a massive dose of capital.

"The majority unions, officers and staff, have agreed to sign the MoU," the bank management said. "Since the unions and associations represent nearly 80 per cent of the personnel, we will have to think of the larger interests of the bank."

"All attempts were made to carry all employees, irrespective of their affliations. It is still hoped that evrybody will accept the MoU," it said. Efforts to bring IBEF and Befi to the signing table were on, it said.

Given that IBEF controls around 20 per cent of all personnel, the management's decision to go ahead with the MoU is bound to trigger unpleasantness. Unfazed, the bank feels it will still be able to carry the day.

IBEF and its parent union, Befi, have refused to sign the MoU. "The underlying causes for the financial crisis the bank faced last year are not being addressed," it said. All other unions including the majority organisations, Indian Bank Employees' Union (IBEU) and Indian Bank Officers' Association (IBOA) have agreed.

The management also said the MoU and the vital recapitalisation issues were irrevocably linked, a stand which has proved to be one of the major bones of contention with IBEF and Befi.

A Rengarajan, General Secretary of the Tamil Nadu chapter of Befi said, "We question the very validity of linking the two issues and want them delinked."The management's stand is summed up this way, "The memorandum of understanding is a commitment on the part of the government as the main shareholder and employees as the bank's main resource."

Befi has listed other issues to be addressed by the management. These include a probe by a central government agency into gross violations of systems and procedures that resulted in the accumulation of non-performing assets (NPAs) worth Rs 2,988 crore. Other demands include publishing the list of major defaulters and the removal of directors who presided over the violations.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.