Bank Unions Defer Three-Day Strike After IBA Talks, Panel to Study Five-Day Week

Bank unions have deferred a planned three-day nationwide strike that was to begin on September 28, following late-night talks with the Indian Banks' Association (IBA). The United Forum of Bank Unions (UFBU), an umbrella body of seven unions representing about 90 percent of bank officers and employees, announced the decision in a circular issued on September 27.

Why the strike was called

The UFBU had called the strike from September 28 to 30 to press for a five-day banking week, with all Saturdays declared holidays. The demand rests on commitments the unions say were made in past agreements but have not been implemented.

At present, only the second and fourth Saturdays of the month are holidays, while the first, third and fifth are working days. According to the unions, banks agreed in principle to a five-day week in 2015, when the second and fourth Saturdays were made holidays. The matter was revisited in 2020 and formalised in a wage settlement signed on March 8, 2024, under which employees agreed to work an additional 40 minutes each day from Monday to Friday in exchange for all Saturdays off. The unions say the agreement was recommended to the finance ministry more than two years ago and is still awaiting government approval.

Besides the five-day week, the unions have demanded the withdrawal of the government's Performance Linked Incentive (PLI) scheme, modifications to the incentive plan through bilateral talks, and a non-discriminatory incentive structure for employees and officers.

The All India Bank Officers' Confederation had said on September 9 that two rounds of online meetings had produced no concrete outcome on the five-day work week. At a press conference in Shimla, UFBU Himachal Pradesh convenor Narendra Sharma said commitments made in an agreement with the government more than two-and-a-half years ago had yet to be implemented, leaving the unions with no option but to agitate.

The UFBU had earlier held a one-day strike on September 11 and had warned that an indefinite nationwide strike would begin on October 26 if the demands remained unresolved.

What changed

Banks operated on Sunday, September 27, to limit disruption to services, since the proposed strike would have followed the weekend holidays on September 26 and 27.

The strike was deferred after a meeting between the IBA and the UFBU at 9:30 pm on Sunday. According to the UFBU circular, a high-level committee of the IBA and the UFBU will be formed immediately to discuss the demand for declaring the remaining Saturdays as holidays and to explore alternatives acceptable to all stakeholders and customers.

On the PLI scheme for Scale IV and above officers, the two sides agreed that discussions could begin with the IBA proposing modifications to the government to address observations raised by the unions and associations. The circular also said residual issues mentioned in the minutes dated March 8, 2024, would be taken up for early resolution.

In view of these decisions, the UFBU agreed to defer its proposed agitational programmes and strike actions.