A proposed nationwide bank strike on September 11 is set to proceed after talks between bank unions, the government, and the Indian Banks' Association (IBA) failed to reach a resolution. The United Forum of Bank Unions (UFBU), a collective of seven unions and associations, confirmed its decision following an inconclusive conciliation meeting held on September 8.
Key Demands Unmet
The central demand driving the strike action is the implementation of a five-day banking week, a point of contention that unions claim was agreed upon in a Settlement/Joint Note dated March 8, 2024. Despite ongoing discussions, no definitive timeline for its acceptance has been provided by authorities.
Other demands raised by the unions include the withdrawal of the government's Performance-Linked Incentives (PLI) scheme, or its modification through bilateral discussions, and the resolution of various residual issues. During the recent conciliation proceedings, the Department of Financial Services (DFS) indicated that the PLI scheme has been put in abeyance and would be discussed with the unions, addressing approximately 50% of their concerns.
Conciliation Efforts Stall
The DFS and IBA urged the unions to reconsider the strike, noting that the five-day banking proposal involves multiple stakeholders and is currently under consideration. The DFS also highlighted India's hosting of a BRICS Meeting on September 11 as a reason to defer the industrial action. However, union representatives stated they would not withdraw the strike unless their core demand was accepted or a clear implementation timeline was provided.
With no common ground found, the conciliation proceedings concluded without an agreement. Another meeting has been scheduled for September 9 via video conference. Both unions and bank managements have been reminded of their obligations under Section 62 of the Industrial Relations Code, 2020, given the strike notice is under conciliation.
Potential for Further Disruptions
Beyond September 11, the UFBU has also issued notice for additional strike actions on September 28, 29, and 30, with a threat of an indefinite strike in October if their demands remain unaddressed. Customers are advised to anticipate potential disruptions to banking services on the designated strike dates.