New Delhi, Nov. 15: The UPA government and the Left trade unions are gearing up for renewed conflict on reforms in the banking sector.

A day after P. Chidambaram said the government was going ahead with plans to consolidate the Indian banking industry, Left labour leaders charged the finance minister with jumping the gun. The finance ministry’s consolidation plan includes a proposal for merger of public sector banks, which the unions fear would lead to job losses.

“We want to know who is talking about merger apart from the finance minister. The common minimum programme mandates the government to hold consultations with all the stakeholders before any decision is taken,” Citu leader W.R. Wardharajan said.

But Citu’s political parent, the CPM, was less strident. “We are not opposed to the merger proposal per se, though we are apprehensive about it,” CPM politburo member S. Ramachandran Pillai said. “The government should explain what the merger plan entails. The party will take a decision after discussing the issue.”

The common minimum programme says public sector banks will be given “full autonomy”. The Left says it is not opposed to autonomy but wants to look at the roadmap Chidambaram has drawn for restructuring the banking sector.

Iran warning

On the Iran nuclear issue, too, the Left blew hot and cold today. Referring to the key meeting in Vienna on November 24 which would decide whether Iran should be referred to the UN, CPI leader A.B. Bardhan said the Centre should “either heed our warning or repent”.

“It’s better to be wise before taking a decision than repent for it later,” the CPI leader said in Kerala today. India had earlier voted with the West.

However, CPM leader Prakash Karat was less strident, saying the issue would be raised in Parliament if the government takes a stand against Iran.