Bank Unions Announce Nationwide Strikes Over 5-Day Week, PLI Scheme

India's banking services face potential disruption as the United Forum of Bank Unions, an umbrella body representing over 90% of the country's banking workforce, has announced a series of nationwide strikes beginning September 11. The industrial action is in protest of the delayed implementation of a five-day banking week and objections to the government's revised Performance Linked Incentive scheme for senior officers. The unions have warned that if their demands are not met, they will escalate to an indefinite strike starting October 26. The immediate dispute centers on two primary issues. The first is the long-pending implementation of a five-day banking week. The Indian Banks Association and the unions had agreed to this proposal as part of the 12th Bipartite Settlement signed on March 8, 2024. Under the plan, banks would remain closed on Saturdays, with employees working an additional 40 minutes from Monday to Friday to keep weekly hours unchanged. The unions state this proposal has been awaiting government approval for more than two years, despite being recommended by the IBA.