Bank unions defer proposed 3-day strike after reaching understanding with IBA

The United Forum of Bank Unions (UFBU) on Sunday deferred its proposed 3-day strike after reaching an understanding with the Indian Banks' Association (IBA) on key demands, including a five-day banking week and changes to the performance-linked incentive scheme for senior officers.

The decision was taken at a meeting between the IBA and UFBU held on Sunday evening, according to a circular issued by the umbrella body representing seven bank employees' and officers' unions.

Under the understanding, a high-level committee comprising representatives of the IBA and UFBU will be formed immediately to deliberate on declaring the remaining Saturdays as holidays.

The committee will examine possible alternatives, consult all stakeholders and work towards a solution acceptable to all stakeholders, particularly bank customers, the UFBU said.

The development comes a day before bank unions were scheduled to begin a three-day nationwide strike, which was expected to affect banking services such as cheque clearance, cash withdrawals and deposits.

The unions had also threatened an indefinite strike from October 26 if their demands remained unresolved.

On the performance-linked incentive (PLI) scheme for officers in Scale IV and above, the IBA and unions agreed that discussions could begin on modifications to the scheme, which the IBA would then propose to the government to address the observations raised by unions and officers' associations.

The parties will also discuss the residual issues listed in the minutes of the meeting held on March 8, 2024, with a view to resolving them expeditiously, the circular said.

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

The UFBU comprises the All India Bank Employees' Association (AIBEA), All India Bank Officers' Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers' Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees' Federation (INBEF) and Indian National Bank Officers' Congress (INBOC).

The unions had been pressing for a five-day banking week for several years.

They have argued that a five-day working week is already followed by several government and financial institutions, including central and state government offices, the Reserve Bank of India, LIC, GIC and NABARD. They have also pointed to the five-day functioning of stock, money and foreign exchange markets.

The proposed strike had prompted several public sector banks and other banking institutions to issue advisories to customers about possible disruption in services.

Earlier this week, the Finance Ministry had appealed to bank employees to refrain from striking and resolve outstanding issues through dialogue.

The ministry had said most concerns of the unions had been "substantially addressed", while the remaining demand for a five-day working week continued to be examined.

It had also said the PLI scheme, one of the key issues raised by unions, was put in abeyance earlier this month following detailed discussions.