Bank Unions Call Nationwide Strike On September 11 Over Pending Demands

The United Forum of Bank Unions (UFBU) has declared a nationwide strike on September 11 to press for multiple demands such as implementing 5-day banking, changing the performance linked incentive (PLI) scheme, pension matters, etc.

If the strike goes ahead, banking might be affected in various parts of the country, especially at public sector banks. September 11 is on a Friday, and is followed by two days of bank holidays. Some states also have bank holidays on September 14 to celebrate Ganesh Chaturthi.

The UFBU, an umbrella organisation representing nine bank employees’ and officers’ unions, has also warned of a three-day nationwide strike from September 28, coinciding with the half-yearly closing of banks.

The unions have further threatened an indefinite strike from October 26 if their demands are not addressed by the government and bank management.

The decision to announce the strikes was taken at a meeting on Sunday. The UFBU cited what it described as the government’s “negative attitude” towards its demands.

Five-Day Banking Remains Pending

One of the unions’ major demands is the implementation of a five-day banking system.

According to the UFBU, the Indian Banks’ Association (IBA) had agreed to the proposal under the 12th Bipartite Settlement and 9th Joint Note, signed on March 8, 2024. Under the proposal, banking employees would work from Monday to Friday, with working hours increased by 40 minutes.

The proposal was subsequently sent to the government for approval but has remained pending for more than two years, the unions said.

Dispute Over Performance-Linked Incentives

The unions have also opposed the government’s PLI scheme for bank officers in Scale IV and above.

The UFBU claims that the agreement with the IBA envisaged performance-linked incentives based on the overall performance of individual banks, with a uniform system for employees and officers up to Scale VII.

However, under the government’s scheme, officers in Scale IV and above could receive PLI of up to 365 days of basic pay, depending on individual performance. Workmen employees and officers up to Scale III would receive a maximum of 15 days’ basic pay plus dearness allowance, according to the UFBU.

The matter is currently under conciliation before the Chief Labour Commissioner and is also pending before the Delhi High Court, the unions said.

The UFBU has alleged that the Department of Financial Services advised banks to implement the government’s PLI scheme despite the ongoing conciliation proceedings. The unions also claimed that some banks had begun crediting PLI payments under the scheme.

Pension Issues Also On Agenda

The unions have listed several other unresolved demands, including pension updation and improvement, a uniform dearness allowance formula for pensioners, and an option for employees covered under the National Pension System to switch to the Old Pension Scheme.

The unions have warned of further industrial action if the issues remain unresolved.