Banking services across the country could be affected on September 11 as the United Forum of Bank Unions (UFBU) has called a nationwide strike over the implementation of a five-day banking week and changes to the Performance Linked Incentive (PLI) scheme.
The September 11 strike is the first phase of a wider agitation announced by the unions. If the issues remain unresolved, UFBU has planned another nationwide strike from September 28 to 30, followed by an indefinite strike from October 26.
The demand for a five-day banking week has been pending despite an agreement reached under the 12th Bipartite Settlement and 9th Joint Note signed in March 2024. Under the proposed arrangement, banks would remain closed on Saturdays and Sundays, while working hours from Monday to Friday would be increased by 40 minutes to compensate for the additional weekly holiday. The proposal was subsequently sent to the government for approval.
The PLI scheme has emerged as another major point of contention. Bank unions have opposed the revised structure for senior officers, arguing that it differs from the earlier understanding that incentives should be linked to the overall performance of a bank and follow a more uniform structure across employees and officers.
The government has now kept the implementation of the PLI scheme for public sector bank executives in abeyance for FY2025-26. The issue will be taken up during the ongoing bipartite settlement and joint note discussions. However, the decision has not prompted UFBU to withdraw its September 11 strike.
The unions have also raised other pending issues, including pension updation, a uniform dearness allowance formula for pensioners and an option for employees covered under the National Pension System to shift to the Old Pension Scheme.
The September 11 action falls on a Friday and is followed by the weekend, meaning branch-level banking services could face disruption over several days in some areas. Customers may therefore prefer to complete important branch-related transactions before the strike date.
Strike schedule
- September 11: One-day nationwide bank strike
- September 28-30: Three-day nationwide strike
- From October 26: Indefinite nationwide strike if demands remain unresolved
The unions are seeking government intervention on the five-day work week, a review of the PLI framework through bilateral discussions and resolution of other pending employee issues.