Three-Day Nationwide Bank Strike Deferred After IBA-UFBU Talks

The United Forum of Bank Unions (UFBU) has deferred its planned three-day nationwide strike, scheduled for Sept 28–30, after reaching an understanding with the Indian Banks’ Association (IBA) during late-night talks on Sept 27. The agreement averts potential disruptions to banking operations during the critical half-yearly closing period on Sept 30, while setting the stage for ongoing negotiations on long-standing demands.

Strike Deferral Averts Operational Disruption

The proposed strike, which had been called over unresolved issues including a five-day banking week, the Performance Linked Incentive (PLI) scheme, and pension-related concerns, was postponed following a meeting between UFBU and IBA representatives. The two sides agreed to form a high-level committee to examine the unions’ demand for declaring all Saturdays as holidays, a key component of the five-day banking week proposal. The decision ensures that bank branches will operate normally during the strike window, avoiding complications during the half-yearly financial reconciliation period.

The government had already taken steps to minimize inconvenience, directing public sector banks and regional rural banks to remain open on Sunday, Sept 27, with the Reserve Bank of India (RBI) approving operations for branches, ATM-linked offices, and currency chests. This move allowed customers to complete essential transactions before the proposed strike, which coincided with the end of a prolonged weekend (Sept 26–27).

Committee to Address Five-Day Week, PLI, and Residual Issues

The newly formed committee will explore alternatives to implement a five-day banking week, with a focus on balancing employee demands and customer accessibility. Under the current arrangement, banks are closed on the second and fourth Saturdays of each month, but unions have long advocated for all Saturdays to be holidays. The IBA and UFBU also agreed to revisit the PLI scheme for officers in Scale IV and above, with the unions seeking modifications to address their concerns. The two parties will also address residual issues from a March 8, 2024, meeting, aiming for a resolution “at the earliest.”

Despite the deferral, the UFBU emphasized that its demands remain unresolved. “The decision to defer the strike does not mean withdrawal of our demands,” the union stated in a circular, adding that it will monitor progress before deciding on further action. The committee’s findings and recommendations will be critical in shaping future negotiations.

Employee Compensation for Sunday Work

The UFBU confirmed that employees who worked on Sept 27, when banks remained open due to the government’s directive, will receive compensation. Workmen will be paid overtime wages at double the rate under the bipartite settlement, while officers who attended work will receive one day’s salary. This measure, outlined in the union’s circular, reflects efforts to address the immediate impact of the government’s precautionary measures.

The deferral of the strike also includes an indefinite action planned for Oct 26, which has been put on hold. However, the UFBU has not ruled out resuming agitation if the IBA fails to meet its demands in the upcoming discussions.

Government and Industry Stance on Five-Day Week

The Finance Ministry has not explicitly committed to a five-day banking week, citing the need for further deliberations. The IBA had previously recommended that all Saturdays be declared holidays, but this requires government approval. The UFBU, meanwhile, has highlighted that the demand has been pending for over two years, with earlier agreements remaining unfulfilled.

The unions have also raised concerns about pension benefits, a uniform dearness allowance formula for pensioners, and provisions for employees under the National Pension System. These issues, though not the primary focus of the latest talks, remain part of the broader dispute.

The next phase of negotiations will determine whether the IBA and UFBU can bridge their differences on the five-day week and other demands. For now, the deferral ensures continuity in banking services, but the unresolved issues leave room for future disputes. The UFBU has signaled it will closely monitor progress, with the possibility of resuming industrial action if expectations are not met.