1 week ago
Bank Unions Escalate Strike Over Five-Day Week, PLI, Pensions
Bank employees are unhappy about several unresolved workplace issues.
They want banks to be closed every Saturday, instead of only on the second and fourth Saturdays.
Employees would work a little longer from Monday to Friday to keep total working time similar.
The unions also object to a new bonus system for senior bank managers.
They prefer the older system, which was linked more broadly to the bank’s performance.
The workers are also asking for better pension updates and other retirement benefits.
Government approval is still needed for the five-day week.
If discussions do not solve the problems, the unions say they may begin an indefinite strike on 26 October.
Around 8 lakh bank employees are preparing for phased agitation over working hours, incentives and pension-related demands.
The five-day banking proposal would close banks every Saturday while adding about 40 minutes to weekday working hours, but government approval is pending.
Unions oppose a revised performance-linked incentive framework for senior public-sector bank executives, saying it bypassed bilateral negotiations.
Pension updation, improved pension benefits, a uniform dearness allowance formula and medical insurance changes remain unresolved.
The United Forum of Bank Unions has threatened an indefinite strike from 26 October if the issues are not settled.
- Who
- Around 8 lakh bank employees represented by the United Forum of Bank Unions and affiliated organisations.
- What
- A phased agitation over five-day banking, the performance-linked incentive framework, pension updates and other service-related issues.
- Where
- The dispute concerns the banking industry, including public-sector banks; the PLI framework is also being challenged in the Delhi High Court.
- When
- The agitation is scheduled to culminate in an indefinite strike from 26 October if the disputes remain unresolved.
- Why
- Unions seek implementation of the five-day banking commitment, bilateral negotiations over the revised PLI scheme and settlement of pension and welfare demands.
Bank unions
Government and banking authorities
Five-day banking
Bank unions
The United Forum of Bank Unions says the proposal was recorded in the 2024 settlement and should be implemented after the agreed approval process.
Government and banking authorities
The proposal still requires government approval and regulatory clearances before revised working hours and Saturday closures can take effect.
Performance-linked incentives
Bank unions
Unions say the revised framework was introduced without bilateral negotiations and replaced a negotiated, bank-linked incentive arrangement with individual performance-based payouts for senior officers.
Government and banking authorities
The government says the revised scheme is intended to reward senior executives and improve productivity and competitiveness in public-sector banks.
Pensions and service benefits
Bank unions
Unions seek pension updation for past retirees, a uniform dearness allowance formula, pension improvements, an option to shift from the National Pension System to the Old Pension Scheme, and better medical benefits.
Government and banking authorities
The articles state that these residual issues were scheduled for further discussions, but do not report a separate detailed position from the government or banking authorities.
Key facts
- Employees involved
- Around 8 lakh bank employees
- Five-day proposal
- All Saturdays would become holidays, with weekday working hours increasing by about 40 minutes
- Current Saturday holidays
- Banks currently close on the second and fourth Saturdays
- Key agreements
- The 12th Bipartite Settlement and 9th Joint Note were signed on 8 March 2024
- Revised PLI framework
- Introduced by the Department of Financial Services in November 2024 for senior public-sector bank executives
- Legal status
- The PLI dispute is under conciliation before the Chief Labour Commissioner and has been challenged in the Delhi High Court
- Proposed strike
- An indefinite strike is planned from 26 October if the issues remain unresolved
Sources
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