The United Forum of Bank Unions (UFBU) has deferred its proposed three-day nationwide bank strike from September 28 to 30 after reaching an understanding with the Indian Banks’ Association (IBA) during a late-night meeting on Sunday, September 27.
The meeting between the IBA and UFBU was held around 9.30 pm on September 27 to discuss the unions’ key demands, including a five-day working week and changes in the Performance Linked Incentive (PLI) scheme for senior bank officers.
In a statement, the UFBU said a joint committee would be formed immediately to examine the demand for declaring all Saturdays as holidays for banks. The committee will look at various options and hold discussions with stakeholders before working towards a solution that is acceptable to all, including bank customers.
The two sides will also hold discussions on changes to the PLI scheme for officers in Scale IV and above. The issue will also be taken up with the government to address the concerns raised by the unions.
Other pending issues mentioned in the minutes of the IBA-UFBU meeting held on March 8, 2024, will also be discussed with the aim of resolving them at the earliest.
Following the understanding reached during Sunday’s meeting, the UFBU said it had decided to defer its planned agitation programmes, including the three-day strike.
The proposed strike was expected to involve around eight lakh bank officers and employees and could have affected banking operations across the country. The main demand behind the strike was the implementation of a five-day working week in the banking sector.
The planned action came after a one-day strike on September 11 and was part of a series of protests announced by the UFBU. The government had earlier said that the PLI scheme had been kept in abeyance and that talks were underway with the unions over their pending demands.
The demand for a five-day banking week has been under discussion for several years. In March 2024, the IBA had agreed in principle to declare all Saturdays as holidays, with employees working additional hours on weekdays to make up for the reduced working days. The proposal was later sent to the government for approval.
The PLI scheme for senior officers has also remained a point of disagreement. Under the earlier structure referred to by the unions, officers in Scale IV and above could receive incentives based on individual performance, while employees and officers up to Scale III had a separate incentive ceiling. The unions have been seeking changes to the existing arrangement.
Ahead of the proposed strike, the government had directed public sector banks and regional rural banks to remain open on Sunday, September 27, so that customers could complete essential banking transactions in case of consecutive bank closures. The Reserve Bank of India had also permitted bank branches, offices, ATM-linked branches and currency chests to operate on the day.
With the strike now deferred, bank services are expected to operate normally on September 28. Talks between the IBA and UFBU on the pending issues will continue.