Trade unions have opposed the government’s plans for merger of public sector banks. At a pre-Budget meeting with finance minister P Chidambaram here on Wednesday, the unions demanded that the government reverse the merger process of State Bank of Saurashtra with SBI at the earliest. They added there should be expansion of branches in and banking net in PSU banks to bring financial reform and inclusion.

The union leaders, who gave their Budget wish-list to the Finance Minister, wanted an end to outsourcing public sector jobs, restoration of public distribution system and a policy for land reforms.

At a pre-budget meeting with Union Finance Minister P. Chidambaram here on Wednesday, representatives of major trade unions said the budget should be at least 10 lakh crore in the wake of the general elections the following year. If the government is genuinely committed to the uplift of the poor, the budget must reflect the genuinity in practice, they said.

Meanwhile, bank unions have decided to go for a nationwide two-day strike on February 25 and 26 to oppose the proposed merger of nationalised banks.

Pointing out that they had “serious differences” with the economic policy being pursued, the trade union representatives described the meeting as a “fruitless exercise” where they have their views, and in most cases these were cynically ignored.

“There is no interaction. We are not given to understand what are the reasons even when the government lives on our support our opinion is hardly considered,” All-India Trade Union Congress (AITUC) general secretary Gurudas Dasgupta told reporters.
Meanwhile, the trade unions also urged the government to introduce measures to contain price rise of the essential commodities. Dasgupta added that special economic zones must be brought under the tax net.

The Indian National Trade Union Congress has asked for steps to tune the duty structure of indirect taxes in a way to promote public private partnership in projects like provision of urban amenities in rural areas.

Dasgupta added the government needed to take steps in conformity with real needs of the people. However, calling the entire exercise a farce, he said he expected little to be implemented. “This is a fruitless exercise and it is more a ritual,” he said.
Unlike the other years, the budget of 2008 must break new grounds; a decisive change is needed to ameliorate the grievances of the people. Urgent steps are needed to combat the price rise of the essential commodities, particularly foodgrains. The collapsed public distribution system must be restored, they said.