Punjab Newsline | New Delhi
Bank branches across the country, including those of major public sector lenders such as State Bank of India (SBI), Punjab National Bank (PNB) and Union Bank of India, will remain closed for three consecutive days from Friday as bank employees observe a one-day nationwide strike.
United Forum of Bank Unions (UFBU) has called the strike on Friday over the long-pending demand for a five-day workweek in the banking sector. Banks will also remain closed on September 12 due to the second Saturday of the month and on September 13 because of Sunday.
The unions have warned that if their demands are not addressed by the government and bank management, an indefinite nationwide strike could begin from October 26.
Banks have advised customers that branch-level services may be affected during the strike. However, digital banking facilities such as UPI, mobile banking and ATMs are expected to remain operational.
UFBU said the proposal for five-day banking was agreed upon in the 12th Bipartite Settlement and 9th Joint Note signed with the Indian Banks’ Association (IBA) on March 8, 2024. Under the proposal, employees would work for an additional 40 minutes each day from Monday to Friday to compensate for the additional weekly holiday.
The IBA approved the proposal and forwarded it to the Central Government for approval. However, the unions said more than two years have passed without the proposal receiving clearance from the Finance Ministry.
What Is the Five-Day Banking Proposal?
At present, bank employees get holidays on the second and fourth Saturdays of every month. Under the proposed system, all Saturdays would become holidays.
In return, working hours from Monday to Friday would increase by around 40 minutes per day.
The unions are also opposing the new Performance Linked Incentive (PLI) guidelines issued by the Department of Financial Services under the Finance Ministry, alleging that the scheme is discriminatory.
Under the guidelines, officers in Scale IV and above could receive PLI equivalent to up to 365 days of basic pay based on individual performance. In contrast, workmen and employees in Scales I to III would be eligible for a maximum incentive equivalent to 15 days of basic pay plus dearness allowance.
UFBU has argued that PLI should be based entirely on the overall performance of the bank and that employees up to Scale VII should receive incentives calculated on an equal number of days. The unions contend that the new guidelines violate the understanding reached between the IBA and bank employees’ unions.
