3 hrs ago
IBA Forms Committee to Discuss Five-Day Banking and Demands
Bank unions want banks to be closed on Saturdays so employees can work five days a week.
The Indian Banks’ Association and the unions have created a committee to discuss the idea.
Bank leaders and representatives of nine unions will take part.
The committee will study different options and consider how customers could be affected.
One proposal would add 40 minutes to the working day from Monday through Friday.
The unions postponed a planned three-day strike after receiving assurances that talks would continue.
They are also unhappy with a performance-linked incentive plan for some senior officers.
The unions say the plan could give much larger rewards to some officers than to other bank employees.
No final approval or starting date for five-day banking has been announced.
The Indian Banks’ Association and United Forum of Bank Unions formed a high-level committee to discuss implementing a five-day banking week.
Bank of India MD and CEO Raineesh Karnatak will chair the committee, with Punjab National Bank MD and CEO Ashok Chandra as alternate chair.
Seven representatives from UFBU-affiliated unions will join the committee, while BKSM General Secretary Vinod Nikam will participate as an invitee.
The panel will examine remaining Saturdays as holidays, consult stakeholders and consider a proposal to extend weekday hours by 40 minutes.
UFBU deferred its proposed September 28–30 strike, but five-day banking and disputes over performance-linked incentives remain unresolved.
- Who
- The Indian Banks’ Association, the United Forum of Bank Unions and representatives of participating banks and unions.
- What
- A high-level committee has been formed to discuss five-day banking, Saturday holidays and other union demands.
- Where
- The discussions concern banks and bank unions in India.
- When
- The committee was announced in an IBA notice dated September 29, after the proposed September 28–30 strike was deferred.
- Why
- To examine alternatives, consult stakeholders and seek agreement on five-day banking and related issues.
Bank Unions
IBA and Government Process
Five-day banking
Bank Unions
UFBU-affiliated unions are seeking Saturday holidays and say the five-day workweek proposal was included in the March 8, 2024 banking settlement and later recommended to the government.
IBA and Government Process
The IBA has agreed to discuss implementation, alternatives and stakeholder concerns, but the committee’s formation does not constitute final approval or set an implementation date.
Performance-linked incentives
Bank Unions
UFBU objects to the government scheme for Scale IV and above officers, arguing that incentives should be linked to overall bank performance and applied more uniformly across cadres.
IBA and Government Process
The government scheme allows Scale IV and above officers to receive up to 365 days of basic pay based on individual performance, while workmen and officers up to Scale III could receive up to 15 days of basic pay plus dearness allowance.
Status of the incentive scheme
Bank Unions
UFBU alleges that implementing the Department of Financial Services scheme during conciliation proceedings violates the status quo obligation and says the issue is also pending before the Delhi High Court.
IBA and Government Process
The articles report that DFS advised banks to implement the scheme and that crediting of incentives had begun, while the dispute remains under conciliation before the Chief Labour Commissioner.
Key facts
- Committee chair
- Raineesh Karnatak, MD and CEO of Bank of India; the committee notice also spells his first name as Rajneesh.
- Alternate chair
- Ashok Chandra, MD and CEO of Punjab National Bank.
- IBA representatives
- Binod Kumar of Indian Bank, Rakesh Sharma of IDBI Bank and G S Rana of State Bank of India, alongside the chair and alternate chair.
- UFBU representatives
- Seven general secretaries representing AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.
- Main proposal
- Declare the remaining Saturdays as holidays, potentially adding 40 minutes to each working day from Monday through Friday.
- Strike status
- UFBU deferred its proposed three-day strike scheduled for September 28–30.
- Unresolved issues
- The unions continue to raise concerns about the performance-linked incentive scheme, pension updates, dearness allowance and other pending matters.
Quotes
Indian Banking Association
The banking industry body that negotiated with UFBU over five-day banking and related demands.
“As agreed in the meeting of the negotiating committee of IBA held with UFBU / Bank Karmachari Sena Mahasangh (BKSM) on 27 September, the high-level committee for holding discussions on the issue of implementation of 5-day banking is constituted.”
livemint.com
Robert Owen
Welsh reformer associated with the historical eight-hour working-day proposal
“Eight hours labour, eight hours recreation, eight hours rest.”
businesstoday.in
Sources
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