Bank unions strike: IBA, UFBU form high-level committee to discuss 5-day banking, other demands — Here’s all we know

The All India Bank Employees Association (AIBEA) in a post on social media platform X (formerly known as Twitter), today said that a high-level committee has been constituted to hold discussions on the issue of implementing five-day banking.

AIBEA is one of the bank employees’ unions that is part of the umbrella body United Forum of Bank Unions (UFBU), which comprises nine bank employees’ and officers’ unions.

Notably, this comes after the UFBU deferred its proposed three-day work strike — originally scheduled from 28-30 September, following assurances from the Indian Banking Association (IBA) and reached an understanding on Sunday, 27 September.

The strike being deferred was notified in a UFBU circular on Sunday, which said the union met and had discussions with the IBA. A high-level committee of both bodies has been formed to deliberate on the issue, explore all possible alternatives, discuss with all stakeholders, and work out a solution acceptable to all, including the customers, it added.

High-level committee for 5-day banking: All we know

The notice dated Tuesday, 29 September by the IBA announces the constitution of a “high-level committee for holding discussion on the issue of implementation of 5-day banking”.

“As agreed in the meeting of the negotiating committee of IBA held with UFBU / BKSM on 27 September, the high-level committee for holding discussions on the issue of implementation of 5-day banking is constituted.

Who are the members?

The announcement gave details of the members who will be part of the committee, as follows:

– Rajneesh Karnatak, MD and CEO, Bank of India — Chairman

– Ashok Chandra, MD and CEO, Punjab National Bank — Alternate Chairman

– Binod Kumar, MD and CEO, Indian Bank — Member

– Rakesh Sharma, MD and CEO, IDBI Bank — Member

– GS Rana, DMD (HR and CDO), State Bank of India — Member

– CH Venkatachalum, AIBEA, General Secretary

– Rupam Roy, AIBOC, General Secretary

– L Chandrasekhar, NCBE, General Secretary

– Sanjay Khan, AIBOA, General Secretary

– Debasish B Choudhary, BEFI, General Secretary

– Prem Makkar, INBOC, General Secretary

– OP Sharma, INBEF, General Secretary

• Vinod Nikam, General Secretary, BKSM will be the invitee.

What is being discussed? What are demands?

Notably, the three-day protest was part of a push from employee unions demanding five-day work week, and due to concerns over Performance Linked Incentive (PLI) scheme, dearness allowance, pension and other issues.

Key demands, according to a UFBU statement in August, are as follows:

• Five-day banking: The statement added that the Indian Banks’ Association (IBA) had agreed to the five-day work proposal as part of its 12th Bipartite Settlement / 9th Joint Note signed on 8 March 2024. As per the agreement, working hours would be increased by 40 minutes from Monday to Friday to make up for the Saturday offs.

The proposal was subsequently recommended to the government but has remained pending for more than two years, it added.

• PLI scheme: The unions have also objected to the government’s PLI scheme for bank officers in Scale IV and above. It said that the government’s scheme differs from the understanding reached with the IBA that PLI would be linked to the overall performance of individual banks and would be uniform for employees and officers up to Scale VII.

Under the government’s scheme, officers in Scale IV and above could receive PLI of up to 365 days of basic pay based on individual performance, while workmen employees and officers up to Scale III would receive a maximum of 15 days’ basic pay plus dearness allowance, it said.

The issue of PLI is currently under conciliation before the Chief Labour Commissioner (CLC) following the strike call issued by the UFBU and is also pending before the Delhi High Court, it claimed.

• Violation of the status quo obligation: The UFBU further alleged that despite the pendency of conciliation proceedings and its offer to hold bilateral discussions with the IBA, the Department of Financial Services (DFS) has advised banks to implement the government’s performance-linked incentive scheme.

Crediting of performance-linked incentive under the DFS scheme has now actually commenced in the banks, the UFBU said, alleging that this was in violation of the status quo obligation during conciliation proceedings.

The UFBU argued that the present PLI scheme suggested by the DFS would disproportionately benefit a small section of officers and undermine the principle of uniformity in incentives across cadres.

• Other key demands: The other key demands that are pending include — updation and improvement of pension,

– A uniform dearness allowance formula for all pensioners, and

– An option for employees covered under the National Pension System (NPS) to switch to the old pension scheme (OPS).