Service conditions of IDBI Bank's employees will remain unchanged even after the sale of the lender to Canada's Fairfax Financial Holdings, a top government official said on Friday.
Existing staff and also the pensioners have "nothing to fear" from the Rs 52,878-crore sale of over 60 per cent holding in IDBI Bank, Arunish Chawla, the secretary of the Department of Investment and Public Asset Management (DIPAM), said.
"As per the share purchase agreement, the service conditions of the existing employees cannot be changed, modified or altered to their disadvantage by the strategic buyer," Chawla told PTI.
The comments from the top bureaucrat came at a time when the employees of the lender are protesting against the government's move. IDBI Bank staff have called for a strike across all branches in early November. The United Forum of Bank Unions also extended support to their strike.
Assuaging the concerns of pensioners, Chawla said a dedicated pension fund has been set aside, and "all the commitments" will continue to be honoured.
Stating that IDBI Bank is not a nationalised bank, he also clarified that the service conditions of IDBI employees is not decided by the government of India but by the board in consultation with the employees.
"IDBI Bank is being restructured as a going concern and even in future it will be a board-managed company. It works under the company and labour law today; it will continue to work under the company and labour law tomorrow," Chawla said.
