Bank unions call nationwide strike on Sep 11 over 5-day banking demand

The United Forum of Bank Unions (UFBU) has decided to go on a nationwide strike on September 11 over the delay in implementing five-day banking, differences over the performance-linked incentive scheme, and several pending demands, including pension-related issues.

If the strike materialises, banking services, especially in public sector banks, would be impacted for four days in many parts of the country.

September 11 is a Friday, and the subsequent two days are bank holidays.

UFBU, an umbrella body of nine bank employees' and officers' unions, has also threatened a three-day subsequent nationwide strike beginning September 28, coinciding with the half-yearly closure.

They have also decided to go on an indefinite strike from October 26 onwards if their demands fall on deaf ears of the government and bank management.

The decision was taken at a meeting held on Sunday, following what the unions described as the government's 'negative attitude' towards their key demands, the UFBU said in a statement.

On five-day banking, it said the Indian Banks' Association (IBA) had agreed to the proposal as part of the 12th Bipartite Settlement/9th Joint Note signed on March 8, 2024, under which working hours would be increased by 40 minutes from Monday to Friday.

The proposal was subsequently recommended to the government, but has remained pending for more than two years, it said.

The unions have also objected to the government's PLI scheme for bank officers in Scale IV and above, saying it differs from the understanding reached with the IBA that performance-linked incentive would be linked to the overall performance of individual banks and would be uniform for employees and officers up to Scale VII.

Under the government's scheme, officers in Scale IV and above could receive PLI of up to 365 days of basic pay based on individual performance, while workmen employees and officers up to Scale III would receive a maximum of 15 days' basic pay plus dearness allowance, it said.

The issue of PLI is currently under conciliation before the Chief Labour Commissioner (CLC) following the strike call issued by the UFBU and is also pending before the Delhi High Court, it claimed.

The UFBU further alleged that despite the pendency of conciliation proceedings and its offer to hold bilateral discussions with the IBA, the Department of Financial Services (DFS) has advised banks to implement the government's performance-linked incentive scheme.

Crediting of performance-linked incentive under the DFS scheme has now actually commenced in the banks, the UFBU said, alleging that this was in violation of the status quo obligation during conciliation proceedings.

The UFBU argued that the present PLI scheme suggested by the DFS would disproportionately benefit a small section of officers and undermine the principle of uniformity in incentives across cadres.