Guwahati: The United Forum of Bank Unions (UFBU) has deferred its proposed three-day nationwide bank strike from September 28 to 30 following late-night discussions with the Indian Banks’ Association (IBA) on Sunday.
The decision was taken after representatives of the UFBU and IBA met at around 9.30 pm on September 27 to discuss key demands raised by the banking unions, including a five-day working week and changes to the Performance Linked Incentive (PLI) scheme for senior bank officers.
In a statement, the UFBU said the two sides had agreed to immediately set up a joint committee to examine the demand for declaring all Saturdays as holidays for banks. The committee will explore various options, consult stakeholders and work towards a solution that is acceptable to all parties, including bank customers.
The IBA and UFBU will also hold discussions on proposed changes to the PLI scheme for officers in Scale IV and above. The matter will subsequently be taken up with the government to address the concerns raised by the unions.
Other outstanding issues mentioned in the minutes of the March 8, 2024 IBA-UFBU meeting will also be reviewed 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 and strike.
The proposed strike was expected to involve around eight lakh bank employees and officers and could have affected banking operations nationwide. The main demand behind the agitation was the implementation of a five-day working week in the banking sector.
The proposed action followed a one-day bank strike on September 11 and was part of a series of industrial measures announced by the UFBU. The government had earlier stated that the PLI scheme was kept in abeyance while discussions with bank unions on pending demands continued.
The demand for a five-day banking week has been under consideration for several years. In March 2024, the IBA had agreed in principle to making all Saturdays holidays, with additional working hours on weekdays proposed to compensate for the reduced number of working days. The proposal was subsequently sent to the government for approval.
The PLI scheme for senior officers has also remained a point of contention between the unions and the IBA. Under the earlier arrangement cited by the unions, officers in Scale IV and above were eligible for performance-based incentives, while employees and officers up to Scale III were covered under a separate incentive ceiling.
Ahead of the proposed strike, the government had directed public sector banks and regional rural banks to remain open on Sunday, September 27, allowing customers to complete essential transactions in anticipation of possible consecutive 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 deferred, banking services are expected to continue normally from September 28, while negotiations between the IBA and UFBU on the outstanding issues will continue.