Bank Strike Called Off for Now After UFBU-IBA Meeting
NEW DELHI: The United Forum of Bank Unions (UFBU) has deferred its proposed three-day nationwide bank strike after reaching an understanding with the Indian Banks’ Association (IBA) during a late-night meeting on September 27.
The strike was scheduled to begin on September 28 and could have affected banking operations across the country. The decision to defer the agitation came after representatives of the UFBU met the IBA at around 9:30 pm on Sunday, just hours before the proposed strike.
In a statement issued after the meeting, the UFBU said that both sides had agreed to take forward discussions on some of the key issues raised by bank employees and officers.
One of the principal issues discussed was the long-standing demand to declare all Saturdays as bank holidays, effectively introducing a five-day working week for banks.
According to the understanding reached between the two sides, a joint committee comprising representatives of the IBA and UFBU will be constituted immediately to examine the issue.
The committee will examine different options, consult stakeholders and work towards finding a solution, with the interests of customers also being taken into consideration.
The demand for a five-day working week has been pending for several years. In March 2024, the IBA had agreed in principle to the proposal under which all Saturdays would be declared holidays while working hours from Monday to Friday would be increased by around 40 minutes each day.
Bank unions have maintained that the proposal was subsequently sent to the government for approval but has remained pending.
The second major issue concerns the performance-linked incentive (PLI) scheme applicable to officers in Scale IV and above.
Under the existing arrangement described by the unions, senior officers can receive performance-linked incentives of up to 365 days of basic pay, depending on performance. For other staff and officers up to Scale III, the maximum incentive is understood to be considerably lower, at 15 days of basic pay plus dearness allowance.
The UFBU has objected to the structure, arguing that it is inconsistent with an earlier understanding under which incentives were linked to the overall performance of the bank rather than being structured differently across categories.
Following Sunday’s meeting, the IBA agreed to begin discussions with the UFBU on modifications to the PLI scheme for Scale IV and above officers. The unions said the discussions would also enable their concerns to be taken up with the government.
Apart from the five-day working week and PLI, the two sides also agreed to discuss other pending issues referred to in the minutes of the meeting held on March 8, 2024.
The objective will be to take up these matters and work towards their early resolution.
Following the understandings reached during the meeting, the UFBU said it would defer the planned protest programmes and strike action.
The proposed three-day strike was the latest escalation in a prolonged dispute between bank unions and the banking management over service conditions and employee-related issues.
The five-day working week has remained one of the principal demands of the unions. Employees have argued that with banks increasingly operating through digital channels and customers having access to services beyond traditional banking hours, the demand for a five-day schedule deserves consideration.
The PLI scheme has emerged as another point of contention, particularly over the manner in which incentives are calculated for senior officers compared with other employees.
For customers, the immediate impact of Sunday’s development is the avoidance of the widespread disruption that a three-day strike could have caused. Branch operations, cheque clearing, cash-related services and other physical banking activities could otherwise have faced interruptions during the strike period.
However, Sunday’s understanding does not amount to a final settlement of all the issues.
The joint committee will now examine the five-day working week proposal, while discussions on the PLI structure and other pending matters are expected to continue.
For now, the proposed three-day strike has been deferred, giving the IBA and UFBU another opportunity to resolve the outstanding issues through negotiations rather than industrial action.
