Banking / Three-Day Bank Strike Averted; Branch Operations to Continue Normally From Monday
·1 hour ago·2 min read
Key Points
The United Forum of Bank Unions deferred its three-day nationwide strike after reaching an understanding with the Indian Banks' Association late Sunday night.
New Delhi, Sep 28: The United Forum of Bank Unions (UFBU) has deferred its three-day nationwide bank strike, which was scheduled to begin on Monday, after reaching an understanding with the Indian Banks’ Association (IBA) late on Sunday night.
The two sides met at 9:30 pm on Sunday and agreed to hold fresh discussions on key demands, including the implementation of a five-day banking week and changes to the performance-linked incentive (PLI) scheme for senior officers.
Under the agreement, a joint IBA-UFBU committee will be formed immediately to examine the demand for declaring all Saturdays as bank holidays. The committee will consult stakeholders and explore possible solutions, including those that take customer needs into account.
The two sides will also begin discussions on changes to the PLI scheme for Scale IV and above officers. The IBA will take up the concerns raised by unions with the government.
The two sides met at 9:30 pm on Sunday and agreed to hold fresh discussions on key demands, including the implementation of a five-day banking week and changes to the performance-linked incentive (PLI) scheme for senior officers.
Under the agreement, a joint IBA-UFBU committee will be formed immediately to examine the demand for declaring all Saturdays as bank holidays. The committee will consult stakeholders and explore possible solutions, including those that take customer needs into account.
The two sides will also begin discussions on changes to the PLI scheme for Scale IV and above officers. The IBA will take up the concerns raised by unions with the government.
📱 Get Argus News App
✨📰 60 Word News🎬 Argus Podcast📺 Live TV and Breaking News🔔 Free Notification Alerts
Download Free:
Other pending issues listed in the minutes of the March 8, 2024, discussions will also be taken up for an early resolution.
Also Read: RBI Absorbs Rs2.23 Lakh Crore via VRRR Auction
What Bank Unions Were Demanding?
Five-day banking has been a key demand of bank unions. In March 2024, the IBA had agreed in principle to declare all Saturdays as holidays, with employees working around 40 minutes extra from Monday to Friday. The proposal has been awaiting government approval.
The unions had also raised objections to the PLI scheme for senior officers. Under the scheme, officers in Scale IV and above could receive incentives of up to 365 days' basic pay based on performance, while employees and officers up to Scale III could receive up to 15 days' basic pay plus dearness allowance.
The unions had argued that the system was inconsistent with an earlier arrangement under which incentives were linked to the overall performance of a bank.
Strike Would Have Hit Branch Services
Around 8 lakh bank employees and officers were expected to participate in the three-day strike, potentially affecting more than 1.81 lakh bank branches across the country.
Banks had already made preparations for the disruption. Public sector and regional rural banks remained open on Sunday, September 27, allowing customers to complete essential branch-related work before the planned strike.
With the strike now deferred, branch operations are expected to continue normally from Monday.
Also Read: RBI Absorbs Rs2.23 Lakh Crore via VRRR Auction
What Bank Unions Were Demanding?
Five-day banking has been a key demand of bank unions. In March 2024, the IBA had agreed in principle to declare all Saturdays as holidays, with employees working around 40 minutes extra from Monday to Friday. The proposal has been awaiting government approval.
The unions had also raised objections to the PLI scheme for senior officers. Under the scheme, officers in Scale IV and above could receive incentives of up to 365 days' basic pay based on performance, while employees and officers up to Scale III could receive up to 15 days' basic pay plus dearness allowance.
The unions had argued that the system was inconsistent with an earlier arrangement under which incentives were linked to the overall performance of a bank.
Strike Would Have Hit Branch Services
Around 8 lakh bank employees and officers were expected to participate in the three-day strike, potentially affecting more than 1.81 lakh bank branches across the country.
Banks had already made preparations for the disruption. Public sector and regional rural banks remained open on Sunday, September 27, allowing customers to complete essential branch-related work before the planned strike.
With the strike now deferred, branch operations are expected to continue normally from Monday.
Related Topics
Explore more stories