Explained: Why 3-Day Bank Strike Has Been Deferred And Why It Was Called On 28, 29, 30 Sept - What Changed In Between?

(MENAFN- Live Mint) The proposed three-day nationwide bank strike from September 28 to 30 on Sunday. The decision was announced by the United Forum of Bank Unions (UFBU) in a circular issued on September 27

Why did bank unions call a strike from September 28-30? Why was it deferred? What changed in between? Here's all you need to know

Why did bank unions call a strike from September 28-30?

The United Forum of Bank Unions (UFB ), an umbrella body of seven unions representing 90 percent of officers and employees, had announced a three-day nationwide strike from September 28-30 to demand implementation of a five-day banking week.

Banks operated on Sunday (September 27) to prevent disruption to banking services, as the proposed strike followed the weekend holidays on September 26 and 27.

Quick answers to key questions

.5 QUESTIONS1Why was the three-day bank strike from September 28 to 30 called by the United Forum of Bank Unions?⌵

The strike was called to demand the implementation of a five-day banking week, with all Saturdays as holidays, following unresolved commitments from past agreements.

2What led to the deferral of the three-day bank strike planned for September 28 to 30?⌵

The strike was deferred after a meeting between the Indian Banks' Association and the UFBU, resulting in the formation of a high-level committee to discuss their demands.

3What are the main demands of the United Forum of Bank Unions related to the strike?⌵

The main demands include implementing a five-day banking week, withdrawing the Performance Linked Incentive schemes, and addressing issues through bilateral discussions.

4How did the decision to open banks on September 27 affect the scheduled strike?⌵

Banks opened on September 27 to mitigate customer service disruptions before the planned strike, ensuring accessibility following a weekend without normal services.

5What is the expected outcome of the high-level committee formed after the strike was deferred?⌵

The committee is expected to explore alternatives for the five-day banking week demand and work towards a resolution acceptable to all stakeholders.

The UFBU had earlier held a one-day strike on September 11. The next strike was planned for three continuous days - September 28, 29 and 30. They had warned that if their demands are not resolved, an indefinite nationwide strike will begin on October 26.

According to the official statement by the UFBU, the unions have raised four main demands:

1. Implementing a 5-day banking week; declaration of all Saturdays as holidays

2. Withdrawal of the government's performance-linked incentive (PLI) schemes

3. Modification of the incentive scheme through bilateral talks; a non-discriminatory incentive scheme for employees and officers

The All India Bank Officers' Confederation (AIBOC) said on September 9 that there were two rounds of online meetings. "There has been no concrete outcome on the Five-Day Work Week," the union had said.

Recently, at a press conference in Shimla, UFBU Himachal Pradesh Convenor and President of the Bankers United Forum of Himachal Pradesh, Narendra Sharma, said the unions were compelled to resort to industrial action because commitments made in an agreement with the government more than two-and-a-half years ago had yet to be implemented.

“Our main demand is the implementation of a five-day banking week, with Saturday and Sunday as weekly holidays. The second major issue is the withdrawal of the new Performance Linked Incentive scheme, which has been implemented unilaterally by the Department of Financial Services,” Sharma was quoted by ANI as saying.

"More than two-and-a-half years have passed since the agreement was signed, but the commitments made in it have still not been implemented. We have therefore been left with no option but to resort to agitation," he said.

What's the issue at heart?

Right now, two Saturdays (the second and fourth of the month) are holidays; the remaining Saturdays (the first, third and fifth) are working days. "We have agreed to extra working hours from Monday to Friday, and so we have asked for all Saturdays to be holidays," he said.

According to unions, banks agreed in principle to move to a five-day work week in 2015, when the second and fourth Saturdays were declared holidays. The issue was revisited in 2020 and later formalized through a wage settlement signed on 8 March 2024.

Under this arrangement, bank employees agreed to work an additional 40 minutes each day, Monday to Friday, in exchange for declaring all Saturdays as holidays.

The unions said the agreement was recommended to the finance ministry more than two years ago, but is still awaiting government approval.

Why was the 3-day bank strike deferred? What changed in between?

Bank unions were expected to hold a nationwide bank strike from September 28 to 30. However, the strike was deferred after a meeting between the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU) at 9:30 pm on Sunday.

Key decisions were made during the meeting:

According to the UFBU circular, "A high-level committee of IBA and UFBU will be formed immediately to discuss the demand for declaring remaining Saturdays as holidays and explore alternatives to arrive at a solution acceptable to all stakeholders and customers."

On the Performance Linked Incentive (PLI) scheme for Scale IV and above officers, the two sides agreed that discussions could start with the IBA proposing modifications to the government to address observations raised by unions and associations.

The circular stated that the residual issues mentioned in the minutes dated March 8, 2024, will also be taken up for discussion for early resolution.

"In view of the above, it was agreed by the UFBU that the proposed agitational programmes and strike actions will be deferred," the circular further stated.

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