12,000 bank workers rally against reforms

The rally was organized by the National Federation of Bank Employees Unions, with participants including Bank SinoPac, Mega International Bank, Bank of Kaohsiung, First Commercial Bank, International Commercial Bank of Taichung, Land Bank of Taiwan, Taiwan Cooperative Bank, Changhua Bank, Taiwan Business Bank, Bowa Bank, Taiwan Stock Exchange Corp., the Eximbank of the ROC, and Mingtai Non-life Insurance, among others.

Of the participating banks, Changhua Bank posted the largest number of protesters, at around 3,500. They shouted for assistance from relevant sectors to prevent the bank from being merged by Taishin International Bank, one of the 13 newer private banks that became operational in 1992-1993.

Leaders of labor unions of the banks also loudly voiced their opposition to the “random mergers and acquisitions” masterminded by the government.

Lawmaker Fei Hong-tai of the opposition Kuomintang also showed up at the rally to express his support for the protest. Fei told the protesters that after serving as the convener of the finance committee during the next legislative session he will help labor unions of banks to counter the government’s plans to extend benefits to big financial conglomerates by allowing acquisition of shares of state-run banks by the private banking groups.

The protesters marched to the Legislative Yuan to present a petition to Legislative Yuan Speaker Wang Jin-pyng, urging lawmakers to prevent state-owned banks from selling or trading its shares for mergers with private financial groups before the government’s reform plan is thoroughly reviewed.

The protesters strongly voiced their opposition to ill-intentioned mergers and private financial groups controlling the nation’s resources.

In addition, the protesters demanded that the government respect each bank’s right to manage its finances and allow bank employees to gain their basic rights: the right to join labor unions, the right to bargain collectively and the right to dispute resolution.

The National Federation of Bank Employees Unions will hold its plenary session in early December, when it is likely to determine which party of presidential candidate to support.

The federation yesterday invited presidential candidate Frank Hsieh of the ruling Democratic Progressive Party and his counterpart Ma Ying-jeou of the opposition Kuomintang to present their “financial reform” concepts at yesterday’s rally, but both candidates failed to show up.

In October 2004, President Chen Shui-bian began to push second-stage financial reforms aimed at halving the number of state banks to six, reducing the number of financial groups to seven, allowing a foreign bank to take over at least one local bank, and having at least three local lenders with a market share exceeding 10 percent.

Under Chen’s plan, Standard Chartered Bank has acquired Hsinchu International Bank and the number of state banks have been reduced by half.

The reform scheme was halted by the Cabinet in April 2006 after news media gave wide publicity to alleged involvement of the Presidential Office and the first lady in Pacific SOGO Department Store’s ownership battle.

After announcing a Cabinet reshuffle in May this year, the president said the second-stage financial reform will continue.

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