Bank Unions Call Nationwide Strike on Sept 11 Over Pay, Five-Day Week Demands

Public sector bank unions, under the umbrella of the United Forum of Bank Unions (UFBU), have announced a series of all-India strikes beginning September 11 to press for their demands, including the implementation of a five-day banking week and withdrawal of the Performance Linked Incentive (PLI) scheme for senior officers.

The UFBU, which represents multiple bank employee and officer unions, said in a statement that the government has adopted a “negative attitude” on important demands. The unions have also asked the government to resolve “residual issues” through bilateral discussions.

If the demands are not met, the unions have planned a three-day strike from September 28 to 30. Should there be no resolution even then, they have announced an indefinite strike starting October 26, 2026.

The demand for a five-day banking week is not new. According to the unions, banks agreed in principle to move towards a five-day working week in 2015, when the second and fourth Saturdays were declared holidays. The matter was revisited in 2020 and later formalised through the wage settlement signed on March 8, 2024.

The unions said the agreement was recommended to the Finance Ministry more than two years ago but is still awaiting government approval. “It is more than 2 years now and yet the matter is kept pending with the Government,” the release said.

The Performance Linked Incentive scheme is another major point of contention. The unions claim there was a clear understanding between them and the Indian Banks’ Association (IBA) that the PLI scheme would be based on the overall performance of a bank, with a uniform number of incentive days for all employees and officers up to Scale VII.

However, the Department of Financial Services under the Finance Ministry has directed banks to implement a different PLI scheme for Scale IV officers and above. Under this scheme, officers from Scale IV upwards could receive PLI up to 365 days of basic pay based on individual performance, while workmen employees and officers up to Scale III would be capped at 15 days of basic pay plus dearness allowance.

The unions have described this as “unilateral and discriminatory” and have called for the scheme to be kept in abeyance until it is modified through bilateral discussions.

Banking services across the country are likely to be affected if the strike materialises. Customers may face disruptions in branch operations, cheque clearing, and other routine banking transactions, though ATMs and digital banking services are generally expected to remain functional.

The UFBU’s statement comes amid ongoing negotiations between bank unions and the government over wage revision and service conditions. The strike call is seen as an escalation in the long-pending dispute.

Industry observers note that the five-day banking week would require amendments to existing rules and coordination with the Reserve Bank of India and other stakeholders. The government has not yet issued an official response to the unions’ latest strike call.