Ten days after the merger of five associate banks, and the Bharatiya Mahila Bank with the State Bank of India (SBI), the Madras High Court has ordered status quo on schemes proposed by the SBI in connection with the terminal benefits, pension and seniority of the migrant employees.
Justice T. Raja passed the interim order on a plea moved by 17 employees of the State Bank of Mysore (SBM) which is one among the associate banks merged with the SBI on April 1.
The petitioners wanted the court to declare certain provisions of the acquisition clauses of the SBM dated February 22 and the ‘offer of employment’ proposed by the SBI dated March 29, as illegal and unconstitutional to the extent of imposing new conditions of service to the migrating employees without their consent.
According to the petitioners, the acquisition order compels the migrating workers from the SBM to work under new conditions of service under a new employer (SBI) without a pre-decisional hearing and on undisclosed terms and conditions.
Claiming that the new service conditions are unfair, unreasonable and unconstitutional, the petitioners wanted the court to pass an interim stay against such clauses.
