Three-day bank strike put on hold after IBA, UFBU reach understanding on key demands

The United Forum of Bank Unions (UFBU) has deferred its proposed three-day nationwide bank strike scheduled from September 28 to 30 following a late-night meeting with the Indian Banks' Association (IBA) on Sunday, September 27.

The decision came after the IBA and UFBU held discussions at around 9.30 pm on September 27 on the unions' demands, including the implementation of a five-day banking week and changes to the Performance Linked Incentive (PLI) scheme for senior bank officers.

According to a statement issued by the UFBU, the two sides agreed to immediately constitute a joint committee to examine the demand for declaring all Saturdays as holidays for banks. The committee will consider different options, consult stakeholders and work towards a solution acceptable to all concerned, including bank customers.

The IBA and UFBU will also initiate discussions on modifications to the PLI scheme for officers in Scale IV and above. The issue will be taken up with the government to address concerns raised by the unions.

Other pending issues listed in the minutes of the IBA-UFBU meeting held on March 8, 2024, will also be discussed with a view to resolving them at the earliest. Following the understanding reached during Sunday's meeting, the UFBU said it had decided to defer its proposed agitation programmes and strike action.

The strike was expected to involve around eight lakh bank officers and employees and affect branch operations across the country. It had been called primarily to press for the implementation of a five-day working week in the banking sector.

The proposed strike had followed a one-day strike on September 11 and was part of a series of industrial actions announced by the UFBU. The government had earlier said the PLI scheme had been kept in abeyance and that discussions were being held with the unions on their outstanding demands.

The five-day banking demand has been under discussion for several years. In March 2024, the IBA had agreed in principle to making all Saturdays holidays, with employees working additional hours on weekdays to compensate for the reduced number of working days. The proposal was subsequently taken up for government approval.

The PLI scheme for senior officers was another point of contention. Under the earlier structure cited by the unions, officers in Scale IV and above could receive incentives linked to individual performance, while employees and officers up to Scale III had a separate ceiling. Unions had raised concerns over the structure and sought changes to the scheme.

Ahead of the proposed strike, the government had directed public sector banks and regional rural banks to remain open on Sunday, September 27, to ensure that customers were able to complete essential banking transactions despite the possibility of consecutive closures. The Reserve Bank of India had also approved the operation of bank branches, offices, ATM-linked branches and currency chests on the day.

With the strike now deferred, bank services are expected to continue as normal on September 28, while discussions between the IBA and UFBU on the outstanding issues are set to continue.