IBA Forms Committee with Bank Unions to Discuss Five-Day Work Week
High-level panel aims to resolve banking sector's workweek demands
1Committee Formation
The Indian Banks’ Association (IBA) has established a high-level committee to address the demand for a five-day banking week. This follows an agreement between the IBA and the United Forum of Bank Unions (UFBU) after deferring a planned three-day strike. The committee includes senior bank executives and union representatives, aiming to find a sustainable solution.
2Key Representatives
The committee is chaired by Rajneesh Karnatak, MD and CEO of Bank of India, with Ashok Chandra of Punjab National Bank as alternate chairman. Other members include CEOs of Indian Bank and IDBI Bank, alongside union leaders from seven major bank employee organizations. This diverse representation ensures balanced discussions.
3Strike Deferment
The UFBU postponed its three-day nationwide strike scheduled for late September after late-night discussions with the IBA. The strike was part of a broader agitation for a five-day workweek and other service-related issues. The deferment reflects a willingness to engage in formal dialogue.
4Historical Context
The demand for a five-day banking week was formalized in the 12th bipartite settlement signed in March 2024. The agreement proposed declaring Saturdays as holidays while extending weekday working hours. However, implementation requires government approval, which remains pending.
5Union Agitation
The UFBU, representing seven bank unions, has intensified its campaign for a five-day workweek. Recent actions include a one-day strike in September and threats of an indefinite strike in October if demands remain unmet. The unions emphasize the need for dignified working conditions.
6Performance-Linked Incentives
Alongside the workweek demand, unions have raised concerns about the performance-linked incentive (PLI) framework for bank officers. The government recently paused the revised PLI framework, adding complexity to ongoing negotiations between unions and the IBA.
7Committee’s Role
The newly formed committee provides a structured platform for dialogue between the IBA and unions. Its primary focus is implementing the five-day banking week, but it may also address broader employee concerns. The committee’s progress will determine the next steps in union actions.
8Future Implications
The committee’s discussions could set a precedent for labor negotiations in India’s banking sector. Successful implementation of a five-day workweek may improve employee morale and productivity, while unresolved issues could lead to further strikes and disruptions.