International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Influence of Union in Local Banks: A Case of Big Five Banks of Pakistan
Rufi Shahzada, Dr. Nadir Ali Kolachi

Since the inception of our country many sectors were facing Union problems since decades, especially the banking sector was very much effected from the era of nationalization when majority of the big banks of Pakistan were operated in the shade of Government of Pakistan, although majority of the big banks have been privatized but the element of Union is still a major part of the local banks, especially the big five banks of the country i.e. United Bank Limited (UBL), MCB Bank Limited (MCB), Habib Bank Limited (HBL), Allied Bank Limited (ABL) and National Bank of Pakistan (NBP) are remain in the influence of Unions. This research has concluded that MCB and NBP have more influence of Union a part from the other three large banks. It has been also concluded from this Independent Study that Unions still influence many decisions of the management in the local banks of Pakistan (The Big Five Banks). Although the influence of Unions are not as strong as it was at the time of nationalization when most of the banks were owned by the government in majority. The core variables that were extracted which are influenced by the Unions are Appraisals, Promotions and Increments, and the other two variables (Transfer and Postings) are also influenced by unions in local banks but they are less influenced as compared to the other three. This study have also pointed that the negotiations are the best way to handle the issues related to Unions because it is pretty evident from our research that most of the members of Union in the big five banks are from non –officer grade cadre and are from clerical staff.

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