1 day ago
Indian Bank Unions Escalate Strikes Over Banking, PLI, Pensions
Indian bank unions say several workplace issues have not been solved.
They plan a one-day strike on September 11.
They plan another strike from September 28 to 30.
They may begin an indefinite strike on October 26 if there is no agreement.
The unions want banks to close on all Saturdays and keep customer hours by adding time from Monday to Friday.
They also oppose a new bonus plan that could give some senior officers much more money than other employees.
Pension changes are another part of their demands.
The bonus dispute is being discussed with a labour official and is also before the Delhi High Court.
The United Forum of Bank Unions has called a nationwide strike for September 11, followed by strikes from September 28 to 30.
UFBU has threatened an indefinite nationwide strike from October 26, 2026, if its demands remain unresolved.
The unions seek implementation of a five-day banking week agreed in a March 8, 2024 settlement, with 40 additional weekday minutes and all Saturdays as holidays.
UFBU opposes a revised Performance Linked Incentive scheme for Scale IV to VII officers, saying it favors individual performance and could provide up to 365 days’ wages.
The unions also seek pension improvements, a uniform dearness allowance formula, and an option for National Pension System members to move to the old pension scheme.
- Who
- The United Forum of Bank Unions, an alliance of seven unions claiming to represent more than 90% of India’s banking workforce, is organizing the action.
- What
- The unions have announced nationwide strikes over five-day banking, the revised Performance Linked Incentive scheme, pension-related demands, and other residual issues.
- Where
- The planned strikes are nationwide and involve workers across public-sector, private, foreign, regional rural, and cooperative banks in India.
- When
- The first strike is scheduled for September 11, followed by strikes from September 28 to 30 and an indefinite strike from October 26, 2026, if unresolved.
- Why
- UFBU says the five-day banking agreement remains pending for government approval and that the revised PLI scheme conflicts with the existing bilateral arrangement and is being implemented while related proceedings continue.
Bank unions’ position
Government and management position
Five-day banking week
Bank unions’ position
UFBU wants implementation of the March 8, 2024 agreement, arguing that longer weekday hours would preserve customer service hours and noting that some institutions already operate on a five-day schedule.
Government and management position
The proposal was sent to the Finance Ministry for approval, but the articles do not report that approval has been granted or provide a detailed government objection.
Revised PLI scheme
Bank unions’ position
The unions want the scheme withdrawn or modified through bilateral discussions. They say shifting from bank-wide performance to individual performance is discriminatory and could give Scale IV to VII officers up to 365 days’ wages.
Government and management position
The Department of Financial Services directed banks to implement the revised formula in November 2024, March 2026 and again on August 21, 2026. The articles do not provide a detailed public justification from the department.
Implementation during proceedings
Bank unions’ position
UFBU alleges that implementation, including the reported crediting of incentives, violates the requirement to maintain the status quo while conciliation and court proceedings continue.
Government and management position
The Department of Financial Services directed banks to proceed with implementation. The Finance Ministry and Indian Banks’ Association had not responded to queries in one report, and the articles do not state how authorities addressed the unions’ legal allegation.
Key facts
- Organizing body
- The UFBU comprises AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.
- Strike schedule
- One-day strike on September 11; three-day strike from September 28 to 30; indefinite strike from October 26, 2026, if demands remain unresolved.
- Five-day agreement
- The proposal was formalized in the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.
- Proposed work schedule
- Employees would work an additional 40 minutes from Monday through Friday in exchange for all Saturdays becoming holidays.
- PLI coverage
- The unions estimate that Scale IV to VII officers covered by the revised formula number about 40,000, or roughly 5% of an eight-lakh banking workforce.
- Reported incentive gap
- The revised formula could provide covered senior officers up to 365 days’ wages; articles report a maximum of 15 days for most other employees, while one UFBU account cites one day’s wage under the existing arrangement.
- Proceedings
- The PLI dispute is under conciliation before the Chief Labour Commissioner and is pending before the Delhi High Court.
Quotes
United Forum of Bank Unions
Bank-union federation representing employees across multiple Indian banking sectors
“Thus, the agitation has been forced on the Unions due to the actions of the Government and managements.”
livemint.com
deccanchronicle.com
Sources
Bank unions call strikes from 11 September, indefinite strike from 26 October over 5-day banking, PLI scheme
Bank Unions Call Nationwide Strike On September 11 Over 5-Day Banking, PLI And Pension Demands
Bank Unions Announce Nationwide Strike On September 11 Over Five-Day Banking, PLI And Pension Issues
UFBU calls for nationwide bank strike from Sept 11 over 5-day week, revised PLI scheme
Bank Unions Announce Sept 11 Strike, Cite Unresolved Issues
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