Bank Unions Strike Sept 11: 5-Day Banking, PLI Disputes Halt Services

The United Forum of Bank Unions (UFBU) has declared a nationwide strike for September 11, 2026, citing significant delays in implementing a five-day banking week and ongoing disputes over the performance-linked incentive (PLI) scheme. This industrial action also addresses various unresolved pension-related issues.

If the strike proceeds, banking operations, particularly within public sector banks, are anticipated to face severe disruption. This impact could extend for four consecutive days in many regions, as September 11 falls on a Friday, followed by two bank holidays and Ganesh Chaturthi on September 14 in some states.

Understanding the Unions’ Demands

The UFBU, representing nine bank employee and officer unions, announced this decision after a meeting on Sunday. They expressed dissatisfaction with what they termed the government’s ‘negative attitude’ towards their key demands.

Beyond the September 11 action, the unions have warned of further industrial unrest. These include:

• A three-day nationwide strike commencing September 28, coinciding with the half-yearly closure.
• An indefinite strike from October 26 if their demands remain unmet.

The Five-Day Banking Standoff

A central point of contention is the long-pending proposal for a five-day banking week. The Indian Banks’ Association (IBA) had agreed to this as part of the 12th Bipartite Settlement/9th Joint Note, signed on March 8, 2024.

This agreement included an increase in daily working hours by 40 minutes from Monday to Friday. Despite being recommended to the government, the proposal has remained pending for over two years, according to the UFBU.

Dispute Over Performance-Linked Incentive

The unions also strongly object to the government’s current PLI scheme, specifically for bank officers in Scale IV and above. They argue this scheme deviates from earlier understandings with the IBA.

The original understanding stipulated that performance-linked incentives should be tied to the overall performance of individual banks. It also required uniform application to employees and officers up to Scale VII.

Key Differences in PLI Schemes:

• Government Scheme (Scale IV+): Officers could receive PLI equivalent to up to 365 days of basic pay based on individual performance.
• IBA Understanding (Workmen & Officers up to Scale III): A maximum of 15 days’ basic pay plus dearness allowance.

The UFBU notes that the PLI issue is currently under conciliation before the Chief Labour Commissioner (CLC) and is also pending before the Delhi High Court. Despite these ongoing proceedings, the Department of Financial Services (DFS) has reportedly advised banks to implement the government’s PLI scheme.

Crediting of these incentives has already commenced, which the UFBU views as a violation of the status quo obligation during conciliation. They argue the DFS-suggested PLI scheme unfairly benefits a small segment of officers, undermining the principle of uniform incentives.

Other outstanding demands from the UFBU include the updation and improvement of pension-related issues for bank employees.