Bank Unions Announce Strikes in September Over Unresolved Demands

Bank Unions Announce Strikes in September Over Unresolved Demands

The United Forum of Bank Unions (UFBU), an umbrella body of seven bank employees' and officers' unions, has announced a series of strikes over unresolved issues related to the five-day banking week and the government's revised Performance Linked Incentive (PLI) scheme.

The forum has called for a one-day strike on September 11, to be followed by a three-day strike from September 28 to 30. If its demands are not addressed, the unions have announced an indefinite strike from October 26, 2026, according to a statement from the UFBU.

The forum comprises seven unions — AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF — and represents workers across public sector, private, foreign, regional rural and cooperative banks.

As per the official statement, the unions have raised four key demands: implementation of a five-day banking week, withdrawal of the government's performance-linked incentive scheme, modification of the incentive scheme through bilateral discussions, and resolution of pending residual issues.

Five-Day Banking Week Demand

The demand for a five-day banking week has been pending for several years. According to the unions, banks agreed in principle to move towards a five-day week in 2015, when the second and fourth Saturdays were declared holidays. The issue was revisited in 2020 and later formalised through the wage settlement signed on March 8, 2024.

Under the arrangement proposed by the Indian Banks' Association (IBA) as part of the 12th Bipartite Settlement and 9th Joint Note, bank employees agreed to work an additional 40 minutes every day from Monday to Friday in return for all Saturdays being declared holidays, as reported by PTI.

The unions said the agreement was recommended to the Finance Ministry more than two years ago but is still awaiting government approval. They also argued that five-day working weeks are already followed by institutions including the Reserve Bank of India, LIC, GIC and NABARD, along with other government and private institutions.

All India Bank Officers' Confederation (AIBOC) general secretary Rupam Roy told media in New Delhi that the proposal sent to the government has remained pending for more than two years.

PLI Scheme Dispute

The unions have also opposed the government's performance-linked incentive scheme for bank officers in Scale IV and above. They said the scheme differs from the understanding reached with the IBA, under which incentives were to be linked to the overall performance of individual banks and remain uniform for employees and officers up to Scale VII.

Under the government's scheme, officers in Scale IV and above could receive a PLI of up to 365 days of basic pay based on individual performance, while workmen employees and officers up to Scale III would receive a maximum of 15 days' basic pay plus dearness allowance. The revised formula covers about 40,000 officers, or 5% of the 8-lakh workforce.

The PLI issue is under conciliation before the Chief Labour Commissioner (CLC) and is pending before the Delhi High Court, according to All India Bank Employees' Association (AIBEA) general secretary Venkatachalam. He alleged that despite conciliation, the Department of Financial Services (DFS) advised banks to implement the government's PLI scheme, and that crediting under the scheme has started, violating the status quo during conciliation.

The Tribune reported that the DFS directed banks on August 21, 2026 to implement the formula, and unions allege this violates the status quo under the Industrial Disputes Act. A strike in March 2025 was deferred after the Chief Labour Commissioner intervened.

Other Unresolved Issues

Beyond the five-day week and the PLI scheme, the unions have raised other unresolved issues including pension, dearness allowance, and the NPS switch option. Union leaders associated with the UFBU include H. Venkatachalam (AIBEA), Rupam Roy (AIBOC), L. Chandrasekhar (NCBE), Sanjay Khan (AIBOA), Debasish Basu Choudhary (BEFI), Prem Makker (INBOC), and P. Sharma (INBEF).

Potential Impact of the Strikes

The one-day strike on September 11 falls on a Friday and is followed by two bank holidays, which could cause a four-day disruption for customers in many parts of the country. September 14 is a holiday in some states due to Ganesh Chaturthi. The three-day strike from September 28 would coincide with the half-yearly closure of bank accounts, potentially extending the disruption for customers.

The unions have stated that customer service hours would not be affected by the five-day week proposal, as employees have agreed to longer working hours from Monday to Friday.