Bank strike: Why unions deferred it and what happens to employees who worked on Sunday?

The United Forum of Bank Unions (UFBU) has deferred its proposed three-day strike from September 28-30 and an indefinite strike from October 26, citing “positive developments” and commitments on five-day banking, performance-linked incentives (PLI) and other pending issues.

The decision was announced by the UFBU, an umbrella body of nine bank employee and officer unions, in a circular issued late Sunday night.

The unions had called strikes over the implementation of five-day banking, keeping the PLI scheme in abeyance, bilateral modification of the PLI framework and settlement of long-pending residual issues.

“After considering the progress achieved and the commitments emerging from the discussions, UFBU has decided to defer the proposed agitational programmes and strike actions,” the circular said.

Why has the strike been deferred rather than withdrawn?

The UFBU stressed that the deferment was not an abandonment of its demands.

The proposed memorandum of understanding (MoU) on five-day banking provides for the immediate constitution of a high-level committee comprising representatives of the Indian Banks' Association (IBA) and UFBU to examine the issue of declaring the remaining Saturdays as holidays.

The committee will examine possible alternatives, engage with stakeholders and work towards a solution, the unions said.

The UFBU has made it clear that the deferment is linked to the commitments recorded in the proposed MoU and is not a withdrawal of its demands.

The demand for five-day banking had been pending despite the IBA recommending to the government that all Saturdays be declared holidays and the March 8, 2024 settlement recording that consequential changes in working hours would take effect after government approval and necessary clearances.

On PLI, the UFBU said the government had already acknowledged its concerns and decided to keep the scheme in abeyance.

It said IBA has now agreed that discussions on the PLI scheme for Scale IV and above can commence and modifications can be proposed to the government based on observations raised by the unions and associations.

The UFBU said it would seek an incentive framework based on “equity, collectivity and relativity” across the banking workforce.

The residual issues arising from the March 8, 2024 settlement and Joint Note will also be taken up between the parties for “expeditious resolution”, according to the circular.

What happens to bank employees who worked on Sunday?

The unions said that employees who worked on Sunday, September 27, when banks were kept open following RBI's directions, would receive compensation.

Workmen employees would be paid overtime wages at double the rate under the bipartite settlement, while officers who attended office would receive one day's wage, the circular said.

The UFBU said it would monitor implementation of the commitments and review its organisational action based on progress within a time-bound process.

What happens next?

The IBA-UFBU discussions on five-day banking, PLI and residual issues will now be important.

The UFBU has said it will monitor the implementation of the commitments and review its organisational action depending on the progress made within a time-bound process.

For bank customers, the immediate implication is that the strikes scheduled for September 28-30 will not take place following the deferment. The proposed indefinite strike from October 26 has also been deferred.