The United Forum of Bank Unions (UFBU), an umbrella body representing nine bank employees’ and officers’ unions, has announced a nationwide strike on September 11 to press for the long-pending implementation of a five-day banking week, changes to the performance-linked incentive (PLI) scheme and resolution of pension-related demands. If the strike goes ahead, banking services, particularly at public sector banks, could be disrupted for four consecutive days in many parts of India, as September 11 falls on a Friday and is followed by bank holidays. The unions have also announced a three-day strike from September 28 to 30 and warned of an indefinite strike from October 26 if their demands remain unresolved. The decision followed what UFBU described as the government’s “negative attitude” towards its key demands.
Why Are Bank Unions Seeking A Five-Day Week?
The central demand is the implementation of a five-day banking week, with banks remaining closed on Saturdays and Sundays. According to UFBU, the Indian Banks’ Association (IBA) had agreed to the proposal under the 12th Bipartite Settlement/9th Joint Note signed on March 8, 2024. The arrangement envisaged extending working hours from Monday to Friday by 40 minutes to compensate for the additional weekly closure. However, the proposal still requires government approval and has remained pending for more than two years, according to the unions.
The unions are also objecting to the revised PLI framework for officers in Scale IV and above. Under the earlier settlement-based system, PLI was linked to the overall performance of a bank and could provide up to 15 days’ basic pay plus dearness allowance. UFBU says the revised government-backed model could link senior officers’ incentives to individual performance, with payments potentially reaching up to 365 days of basic pay. The dispute is currently part of conciliation proceedings before the Chief Labour Commissioner.
What Happens If The Strike Goes Ahead?
The September 11 action could have a wider impact because of the surrounding holidays. With Friday followed by the weekend, customers in several parts of the country could face interruptions to branch-based banking services for four days. September 14 is also a bank holiday in some states for Ganesh Chaturthi. Digital banking services are expected to remain available, but customers who depend on physical branches may face delays.
The unions have escalated their action after months of negotiations and conciliation. A recent August 20 meeting between UFBU and the IBA discussed the PLI dispute as well as five-day banking and other issues, but no resolution has prevented the latest strike call. Beyond working hours and incentives, the unions are seeking improvements in pension benefits, a uniform dearness allowance formula for pensioners and an option for employees covered by the National Pension System to move to the old pension scheme.
The Logical Indian’s Perspective
Employees deserve fair working conditions, reasonable working hours and a meaningful voice in decisions that affect their livelihoods. In this case, the unions argue that the five-day banking proposal was already agreed upon with the Indian Banks’ Association in 2024, while disputes over the revised PLI structure and pension-related demands have remained unresolved.
The government, bank management and unions therefore have a responsibility to engage in meaningful negotiations rather than allow differences to harden into prolonged industrial action. At the same time, banks provide an essential public service, and repeated or prolonged strikes can have consequences beyond the negotiating table. Customers, small businesses, senior citizens and people who depend on physical branches may struggle if services are disrupted for several consecutive days.
With the unions already announcing a three-day strike later in September and warning of an indefinite strike from October 26, the potential impact could become significantly wider if a settlement is not reached. Industrial action is an important democratic tool for workers to raise legitimate concerns, but it should ideally remain a means of bringing all sides back to the negotiating table, not become a substitute for dialogue.
The government and bank management should listen seriously to employees’ concerns, while unions should also recognise the responsibility that comes with representing workers in a sector relied upon by millions. A transparent discussion on five-day banking, a fair and non-discriminatory PLI system, and unresolved pension issues could help build a solution that protects both employee welfare and public access to banking services. Can the government, bank management and unions find common ground through dialogue before the dispute escalates into prolonged disruption for millions of customers?
