3-day bank strike deferred: What happened during union body meet? Will SBI, HDFC Bank now remain open 5 days a week?
3-day bank strike deferred: The proposed three-day nationwide bank strike from September 28 to 30 has been deferred after the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) reached an understanding on Sunday night. The development comes just hours before the strike was scheduled to begin and offers temporary relief to customers who could otherwise have faced disruption in branch banking services.
According to a UFBU circular issued on September 27, the decision followed a meeting between the two sides at 9:30 pm. The unions said they had agreed to defer their planned agitation and strike action after discussions on five-day banking, the performance-linked incentive (PLI) scheme and other pending issues.
What happened in Sunday’s IBA-UFBU meeting?
The meeting produced an understanding on taking the key outstanding issues forward instead of proceeding with the three-day strike.
The most significant decision was to immediately form a high-level committee comprising representatives of the IBA and UFBU. The committee will examine the proposal to declare the remaining Saturdays as holidays.
According to the UFBU, the committee will explore possible alternatives, consult stakeholders and work towards a solution that is acceptable to all parties, particularly customers.
Will banks now remain open only five days a week?
Not yet as Sunday agreement does not mean that all Saturdays have immediately been declared holidays. Instead, the issue will now be examined by the proposed IBA-UFBU high-level committee.
The demand is therefore moving back into a structured discussion between the banking industry body and unions. Any final change to the working-week arrangement would still depend on the outcome of the process and the necessary approvals.
The IBA had previously backed the proposal for a five-day banking week, but its implementation has remained pending.
What happened to the PLI dispute?
The PLI issue was also discussed during the meeting.
The UFBU circular said that, for officers in Scale IV and above, discussions can begin with the IBA to propose modifications to the existing scheme and place those changes before the government.
The development follows the government’s earlier decision to keep the PLI scheme in abeyance after discussions with bank unions.
What about the other pending demands?
The two sides also agreed to discuss the residual issues listed in the minutes dated March 8, 2024, with the aim of resolving them quickly.
This means the Sunday understanding is broader than the five-day banking demand. The PLI scheme and other pending issues will also remain part of the discussions between the IBA and UFBU.
Why was the September 28-30 bank strike called?
The UFBU had called the three-day strike primarily over its long-pending demand for a five-day banking week, under which all Saturdays would become holidays. At present, bank branches generally remain closed on the second and fourth Saturdays but operate on other Saturdays.
The unions had also raised concerns over the PLI scheme for officers in Scale IV and above, along with other unresolved issues listed in the March 8, 2024 minutes.
The proposed strike followed an earlier nationwide one-day strike on September 11. The five-day banking demand had remained unresolved despite earlier discussions between the unions, IBA and government representatives.
