Bank Strike Put on Hold After Late-Night Talks

Banking services avoided a major disruption after unions and the industry body reached a last-minute understanding.

The United Forum of Bank Unions (UFBU) deferred its planned three-day nationwide strike after meeting the Indian Banks’ Association (IBA) late Sunday.

The decision came just hours before the proposed walkout was due to begin.

The meeting started at 9.30 pm. Subsequently, both sides agreed to form a joint committee on the demand for five-day banking.

The panel will include IBA and UFBU representatives. It will examine different options and consult stakeholders, including customers.

Meanwhile, discussions will begin on changes to the performance-linked incentive (PLI) scheme for Scale IV and above officers. The talks will also address other pending matters recorded in the minutes dated March 8, 2024.

Following these commitments, UFBU suspended its planned protests and strike action for now. The move prevented a disruption that could have affected millions of customers nationwide.

The proposed strike involved around 8 lakh bank officers and employees. It was expected to impact more than 1.81 lakh bank branches.

Banks had already advised customers to complete essential branch-related work ahead of the shutdown.

At the centre of the dispute was the long-standing demand for a five-day banking week. In March 2024, the IBA agreed in principle to make all Saturdays bank holidays.

However, the proposal still awaits government approval. Under the arrangement, employees would work around 40 additional minutes from Monday to Friday.

The PLI structure also remains a major concern for unions. Scale IV and above officers can receive incentives of up to 365 days of basic pay, depending on performance.

In comparison, employees and officers up to Scale III can receive up to 15 days of basic pay plus dearness allowance.

Unions have objected to the difference. They argue that the structure departs from an earlier understanding based on the bank’s overall performance.

For now, further negotiations will determine how these issues progress.

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