KARACHI, March 16: Habib Bank Ltd. (HBL), for the first time after privatization, is faced with a challenge as the recent retrenchment of 2,300 employees has not been accepted by the workers’ union.

The HBL sent some 2,300 employees home with a Golden Handshake (GHS) package but the employees refused to accept the decision. They went for one hour token strike and decided to extend it to two hours daily from Friday.

Sources said that the employees succeeded to get the political backing and the CBA was said to be negotiating with the management of the bank to restore the jobs of the employees.

The CBA of the HBL had won election with the backing of the Muttaheda Qaumi Movement (MQM). Sources said that the situation was tricky and a difficult one.

The final decision regarding the fate of the retrenched employees will have far-reaching effects. In case the management decides in favour of employees, it will alert the government which wants to privatize Pakistan Steel, PIA and other workers intensive organisations.

The HBL is among the top banks with an impressive growth in profits over the last couple of years. Sources said that the CBA of the HBL reached an agreement with the management but the details were not yet made public.