The Government of India has declared banking industry as public utility service till October 21. The order has been issued under provisions of Industrial Disputes Act.
Highlights
- The banking services have been brought under the Industrial Disputed Act in order to prevent strikes by the employees of banking sector.
- The order has been passed by the labour ministry.
Industrial Disputes Act
- The Industrial Disputes act, 1947 regulates Indian labour laws.
- The main objective of the act is to secure harmony and peace in the work culture of Indian Industries.
- The act applies only to organized sector.
Path of the order
- The order was initiated by Ministry of Finance and has then gone to Reserve Bank of India for clarification.
- Finally, the order was passed and implemented by the Ministry of Labour.
Reasons for the order
- There are several decisions of the government that the bank unions do not agree.
- For instance, several bank unions protested against the bank mergers.
- The unions did not agree to the merger as they believed that consolidation of banks will lead to closing down of branches.
Public Utility Services
- The Public Utility Services are those services that operate as public service corporation.
- They provide essential services such as telephones, electricity, natural gas, postal services and water.
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