Bank employees prepare to strike over merger plan

State-controlled bank employees are planning to take to the streets and hold a vote on Saturday on joint industrial action in opposition to the government's industrial consolidation plan, the association of bank unions said.

"[The move] is to voice our protest against the second-stage financial reform ... that the government has vowed to push forward," said Han Shih-shian (韓仕賢), secretary-general of the National Federation of Bank Employee Unions.

Unions of Central Trust of China (中央信託局), the International Commerce Bank of China (ICBC, 中國國際商銀) and First Financial Holding Co (第一金控) would participate in the vote on Saturday, Han said.

A strike would take place if more than half of the employees at the three banks cast ballots in favor of taking action, he added.

The government has vowed to consolidate the crowded banking sector with the aim of halving the number of state banks to six by year's end and financial holding firms to seven by the end of next year.

But this plan outraged state bank employees and resulted in a four-day strike by employees at the state-run Taiwan Business Bank (台灣企銀) in September.

Employees at Central Trust and ICBC oppose mergers before signing collective agreements to secure their rights, while employees at First Financial are resisting being taken over by rivals, Han said.

Central Trust is likely to be put up for sale, while First Financial is rumored to be up for sale to rivals including Cathay Financial Holding Co (國泰金控). ICBC is slated to merge with Chiao Tung Bank (交通銀行) in March next year.