Bank unions announce strikes over 5-day banking, PLI scheme and pension demands

The United Forum of Bank Unions (UFBU) has announced a series of strikes, including an all-India strike on September 11, a three-day strike from September 28-30, and an indefinite strike starting October 26. The demands include the delay in implementing a five-day workweek, opposition to the revised performance-linked incentive (PLI) scheme for senior bank officers, and unresolved pension and service-related issues.

These demands have arisen two years after the last wage settlement between the Indian Banks’ Association (IBA) and bank unions. The 12th Bipartite Settlement for workmen and the 9th Joint Note for officers were signed on March 8, 2024, and are in effect until November 2022 for five years. The settlement provided for a 17% increase in salary and allowances, with a total annual outlay of approximately ₹12,449 crore for public sector banks.

One pending issue is the introduction of a five-day workweek, with banks currently remaining closed on Saturdays while extending working hours on other days by about 40 minutes. The government’s nod and regulatory clearances are still pending. Another key issue is the revised PLI scheme, which was linked to overall bank performance and available to employees and officers up to Scale VII under the 11th Bipartite Settlement.

However, the UFBU contends that the revised framework, introduced in November 2024, assesses performance through individual parameters and is tied to individual pay scales. The unions oppose this change, arguing it deviates from the earlier uniform incentive for senior officers. Additionally, the UFBU has raised concerns about unresolved pension and service-related issues from the March 2024 settlement, including periodic pension updates, improvements in the pension scheme, changes to medical insurance, and a uniform dearness allowance formula for pensioners.