Nationwide Bank Strike Deferred After IBA-UFBU Talks

The nationwide bank strike planned for September 28 to 30 has been deferred after the IBA and UFBU agreed to discuss key demands raised by bank unions.

The planned bank strike for September 28 to 30 has been deferred after the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) reached an understanding on certain demands raised by bank unions.

According to the circular released by UFBU on September 27, the agreement was reached after a discussion between the IBA and UFBU held on Sunday night. According to the UFBU, the bank strike and all other agitation programmes have now been deferred following the discussion.

UFBU had decided to hold a bank strike, along with other agitation programmes, over various demands, including a five-day banking week and the Performance Linked Incentive (PLI) scheme.

As per the UFBU circular, a high-level committee consisting of representatives from the IBA and UFBU will be constituted immediately to consider the demand that the remaining Saturdays should be declared holidays.

The demand for a five-day banking week has been one of the key contentious issues between banking unions and the banking sector. Earlier, the finance ministry had stated that it had not committed to implementing the proposal.

PLI Scheme Also on the Agenda

According to UFBU, the IBA and trade unions agreed to commence talks on the Performance Linked Incentive scheme for Scale IV and above officers. The IBA will make recommendations after considering the concerns raised by the trade unions and associations.

Furthermore, both sides will deliberate on other outstanding issues that were identified in the minutes of their meeting held on March 8, 2024.

The trade unions had called for the strike after an attempt to reach an agreement during a conciliation meeting earlier in the week ended without a resolution. This follows the nationwide strike held on September 11.

Why Was the Nationwide Bank Strike Planned?

The demands of the unions included better pension benefits, a uniform dearness allowance formula for pensioners and an option for employees covered by the NPS to switch to the OPS.

Another important aspect of the proposed strike was that September 30 is the last day of the half-yearly closing of the banks. Banking activities on that day include reconciliation, provisioning, treasury and market operations.

Banks were also directed to remain operational on Sunday, September 27, to ensure that there were no disruptions due to the proposed strike.

The strike, which was deferred after the talks between the IBA and UFBU, will now not take place from September 28 to 30.

The development provides both parties with more time to negotiate their demands, including the proposal for a five-day working week in Indian banks. Business Honor observes that the deferred nationwide bank strike gives the IBA and UFBU more time to negotiate key banking-sector demands while avoiding immediate disruption to customers.

FAQs

Why was the nationwide bank strike deferred?

According to the UFBU, the strike was deferred after the IBA and UFBU reached an understanding to discuss key demands and pending issues.

When was the nationwide bank strike scheduled?

The strike was planned for September 28 to 30.

What was the main demand behind the strike?

The five-day banking week was one of the main demands raised by the bank unions.

What will happen to the five-day banking demand?

A high-level committee representing the IBA and UFBU will examine the demand for declaring the remaining Saturdays as holidays.

Will the PLI scheme be discussed?

Yes. The UFBU said discussions will begin on the PLI scheme for Scale IV and above officers, with the IBA expected to propose modifications to the government.