Bank strike: Unions call nationwide shutdown over 2 key demands — 5-day work week, PLI scheme rollback; check dates here

The United Forum of Bank Unions (UFBU) recently announced a series of nationwide strikes over two key demands. The umbrella body representing major bank employee and officer unions on Sunday raised demand for five-day banking week and the withdrawal of the government's revised performance-linked incentive (PLI) scheme.

The unions have announced three phases of agitation scheduled for September.

UFBU recalled the terms of 12th Bipartite Settlement and 9th Joint Note signed in March 2024 on five-day work week. Suggesting that the proposal is still awaiting government approval more than two years later, UFBU's notice Over 5 days work week demand said, "The IBA has agreed in the 12" BPS/9" Joint Note signed on 8" March, 2024 to introduce 5 days banking (by increasing 40 minutes of working hours daily from Monday to Friday) and the same has been duly recommended to the Government."

Opposing Finance Ministry’s revised PLI framework, the unions called it discriminatory as it offers substantially higher incentives to officers in Scale IV and above based on individual performance.

“DFS/Finance Ministry has directed Banks to implement a different PLI scheme for Scale IV officers and above. Under this Scheme, the officers from Scale IV and above would be paid PLI upto 365 days of Basic Pay based on their individual performance while workmen employees and officers upto Scale IlI would be paid a maximum of 15 days Basic Pay+DA,” the circular said alleging a violation of agreement between the Unions and Indian Banks' Association (IBA).

According to UFBU, the PLI scheme had to be based on the performance of the Bank as a whole and should have had uniform number of days for all employees and officers upto Scale VII.

Besides the key demands, Bank Unions pushed for revision of the PLI scheme through bilateral discussions with Unions Resolve and pressed for address of residual issues such as like updation and improvement in pension, uniform DA formula for all pensioners and option for employees under NPS to switch over to OPS. The PLI issue is currently under conciliation before the Chief Labour Commissioner (CLC) and is also being litigated in the Delhi High Court, the circular said.

Few days ago, UFBU opposed any top-down and market-centric restructuring of public sector banks. The Forum of Bank Unions pushed for democratic boards, greater stakeholder representation and restoration of public-purpose banking. It also demanded fair, inflation-protected returns on small deposits and expansion of direct branch-based lending to small borrowers.

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