Banking services will function normally today after the United Forum of Bank Unions (UFBU) put off its three-day nationwide strike, which was to run from September 28 to 30. The decision came after a late-night meeting with the Indian Banks’ Association (IBA). Here is what led to it and what it means.
The unions had called strikes over the implementation of five-day banking, keeping the performance-linked incentive (PLI) scheme in abeyance, bilateral modification of the PLI framework and settlement of long-pending residual issues. The dates coincided with the half-yearly closing of banks, and the strike was expected to affect public sector banks, old-generation private sector banks and regional rural banks.
Why was it deferred?
The UFBU, an umbrella body of nine bank employee and officer unions, cited “positive developments” and commitments on five-day banking, PLI and other pending issues. The specifics agreed at the meeting were these. The IBA and UFBU will form a high-level committee to discuss making the remaining Saturdays holidays. Discussions will also begin on the PLI scheme for officers in Scale IV and above, with the IBA proposing modifications to the government to address the unions’ observations. The residual issues listed in the minutes of March 8, 2024, will also be taken up so that they can be resolved at the earliest.
The UFBU has also deferred an indefinite strike that was planned from October 26. The unions stressed that deferment does not mean withdrawal of their demands, and they will monitor implementation of the commitments before deciding on further action. They say they will review their position depending on progress within a time-bound process, which gives the IBA a defined window to show results.
What about staff who worked on Sunday?
Banks were kept open on Sunday, September 27, following the RBI’s directions. The UFBU circular says workmen employees who worked that day will be paid overtime at double the rate under the bipartite settlement, while officers who attended office will receive one day’s wage.
The UFBU has deferred strikes before on assurances from the other side. In an earlier instance, it deferred a two-day strike after receiving positive assurances from the finance ministry and the IBA on demands including a five-day work week, with the Chief Labour Commissioner monitoring implementation. Whether the talks now produce results, particularly on the five-day week and PLI, will decide whether the October 26 strike returns to the calendar.