Bank unions announce strikes on September 11 over unresolved issues

Banks unions across India have announced a nationwide strike on September 11, 2026, over unresolved disputes regarding the implementation of a five-day banking week and the government's revised Performance Linked Incentive (PLI) scheme. The United Forum of Bank Unions (UFBU), representing over 90 percent of the banking workforce, has called for a one-day strike on the specified date, with plans for further actions if their demands remain unmet. The unions have warned of an indefinite strike starting on October 26, 2026, should their grievances not be resolved. The strike follows a long-standing demand for a five-day banking week, which the unions claim has been pending for several years. Initially discussed in 2015, when the second and fourth Saturdays were declared holidays, the proposal was revisited in 2020 and formally structured through a wage settlement signed on March 8, 2024. This agreement included an arrangement where employees would work an extra 40 minutes daily from Monday to Friday in exchange for all Saturdays being non-working days. Despite this agreement, the unions say it was submitted to the Finance Ministry over two years ago and remains pending government approval. A key component of the dispute involves the PLI scheme, which the unions argue has been implemented in a discriminatory manner. Originally introduced through a 2020 settlement, the scheme was intended to apply uniformly to all bank employees, from housekeeping staff to senior management. Incentives were capped at a maximum of 15 days' wages, based on the performance of the bank as a whole. However, in November 2024, the Department of Financial Services issued directives that altered the scheme, allowing senior officers from Scale IV to VII to receive incentives based on individual performance, potentially reaching up to 365 days' basic pay plus dearness allowance. This change affects approximately 40,000 officers, or roughly 5 percent of the industry's total workforce. The unions have criticized the revised scheme as both discriminatory and unlawful, arguing it violates the status quo requirement under the Industrial Disputes Act. They claim the government has ignored ongoing negotiations and instead directed banks to implement the new formula, despite the matter still being under review by the Chief Labour Commissioner. The UFBU previously organized a strike in March 2025 over this issue, which was postponed following intervention by the Chief Labour Commissioner, who urged the Indian Banks' Association and unions to reach a modified agreement. Despite submitting proposed amendments, the government reportedly instructed banks in March 2026 to proceed with the revised PLI scheme. The unions took the matter to the Delhi High Court, and the case remains pending. The latest escalation occurred on August 21, 2026, when the Department of Financial Services once again directed banks to implement the new formula, prompting the current round of strikes. The UFBU consists of seven member unions, including the All India Bank Employees Association (AIBEA), the National Council of Bank Employees (NCBE), and others, representing workers across public sector, private, foreign, regional rural, and cooperative banks. The unions have emphasized that the five-day working week is already adopted by several financial institutions, such as the Reserve Bank of India, LIC, GIC, and NABARD, among others. They assert that customer service hours will not be impacted, as employees have agreed to extended working hours from Monday to Friday. The situation highlights deepening tensions between labor representatives and regulatory authorities, with the unions insisting that their demands are both reasonable and legally grounded. As the strike approaches, the outcome of these negotiations will likely shape the future of working conditions in the banking sector.