The National Union of Bank Employees (NUBE) will submit two memorandums to the government appealing against any potential abuse of human resources by banks which outsource services.

Among the concerns raised by the union are possible staff displacement, less favourable employment terms and conditions, and the loss of union membership.

The NUBE wants an official assurance from the government that its members interests will be protected against any abuse by banks which outsource their non-core functions.

A memorandum to Prime Minister Dr Mahathir Mohamad will cover the socio-economic and policy aspects of the implementation of outsourcing including security of employment, while the one to the Finance Ministry will cover institutional and financial aspects.

Four banks have outsourced some of their functions and processes, including Bumiputera-Commerce Bank Bhd (BCB), pursuant to a Bank Negara financial master plan.

In a symposium held last Saturday, NUBE general secretary J Solomon said the union wants an assurance from the relevant authorities that the implementation of outsourcing will be confined to non-core functions without any staff displacement.

Protect members interest

He said the authorities must also guarantee that non-core activities are outsourced to professional and specialised service providers and not to any RM2 company set up for that purpose.

This will not only directly affect the employment and income security of the employees but also negate the very objective of outsourcing, thus weakening the banks stability and competitiveness, said Solomon in his keynote address.

Stressing that outsourcing must be done gradually, cautiously and in a systematic manner in consultation with the unions concerned, he also lamented the banks refusal to recognise the unions in the banking industry even though their members are affected.

The one-day symposium was attended by about 25 participants from the NUBE and the 10 affiliates of the Federation of Trade Unions of Employees in Banking and Financial Institutions.

Also present were Malaysian Trades Union Congress deputy president Mohd Shafie BP Mammal and secretary-general G Rajasekaran.

The seminar also discussed, among other matters, whether or not the outsourcing exercise was bona fide.

BCB has shelved implementing its second phase of outsourcing since late last month pending a clarification from Bank Negara on the interpretation of core and non-core banking functions as requested by the NUBE.