Bank Employees Announce Nationwide Strikes
Banking services across India could face disruption this month as the United Forum of Bank Unions (UFBU) has announced a one-day nationwide strike on September 11, followed by another three-day strike from September 28 to 30.
The unions, which represent more than 90% of the banking workforce according to their claims, are protesting over several unresolved issues, with the introduction of a five-day banking week and changes to the Performance Linked Incentive (PLI) scheme among their key demands.
If the issues remain unresolved, the unions have also announced plans for an indefinite strike from October 26.
Why Bank Unions Want a Five-Day Week
The demand for a five-day banking week has been pending for several years. Bank employees currently receive holidays on the second and fourth Saturdays of every month.
According to the unions, an agreement was reached in principle to make all Saturdays holidays, with employees working additional hours from Monday to Friday to compensate. The proposal was subsequently incorporated into the wage settlement signed in March 2024, but it is still awaiting the required government approval.
The unions argue that customer service hours would not necessarily be reduced because employees would work longer hours on weekdays.
Dispute Over the PLI Scheme
The revised Performance Linked Incentive scheme is another major source of disagreement.
The unions are opposing a revised incentive formula for senior officers in Scale IV to VII. Under the earlier arrangement, incentives were linked to the overall performance of banks and applied across employee categories.
The revised system places greater emphasis on individual performance and could allow senior officers to receive incentives significantly higher than those available to most other employees.
Unions have described this disparity as unfair and have demanded that the government withdraw the revised formula and instead resolve the matter through bilateral negotiations.
What Customers Should Expect
The September 11 strike falls on a Friday and is followed by the second Saturday and Sunday. In some states, September 14 is also a bank holiday for Ganesh Chaturthi, potentially extending the disruption for customers.
The second round of industrial action from September 28 to 30 could similarly affect branch operations during the month-end period.
However, digital banking services such as internet banking, mobile banking, UPI and ATM transactions are expected to remain available even when physical branches are closed.
The Bigger Concern for Banks
The dispute highlights growing tensions between bank employees, management and the government over working conditions, incentive structures and pending wage-related commitments.
A prolonged strike could create inconvenience for customers and businesses, particularly those dependent on physical branches and cash-based services. The coming weeks will therefore be important to see whether negotiations can prevent the proposed industrial action from escalating.
Summary
Bank unions have announced a nationwide strike on September 11 and another three-day strike from September 28 to 30. Their key demands include implementation of a five-day banking week, withdrawal or modification of the revised PLI scheme and resolution of other pending issues. If no agreement is reached, an indefinite strike could begin from October 26.
