A nationwide bank strike is slated for tomorrow, January 27, potentially disrupting banking services across the country as employees push for the implementation of a five-day workweek. The strike notice was issued by the United Forum of Bank Unions (UFBU), an umbrella organization comprising nine major bank unions, under the Industrial Disputes Act, 1947.
The strike stems from a long-standing demand to declare all Saturdays as bank holidays, effectively instituting a five-day workweek. The UFBU asserts that the Indian Banks' Association (IBA) has already recommended this proposal to the government, based on a memorandum of understanding signed on December 7, 2023, and subsequent agreements in March 2024. However, final clearance from the government and regulators is still pending.
If the strike proceeds, public sector banking operations are likely to be affected for three consecutive days, as January 25 and 26 are already designated holidays. Most public sector banks have alerted customers about potential service disruptions, which may include difficulties with branch operations, check clearances, and customer support. Private sector banks, however, are not expected to be significantly impacted.
The unions argue that the demand for a five-day workweek dates back to 2015, when only the second and fourth Saturdays were declared holidays. They highlight that employees in other financial institutions, such as the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), and General Insurance Corporation (GIC), as well as central and state government offices and stock exchanges, already enjoy a five-day workweek. The unions also contend that bank employees face significant workloads and stress due to staff shortages, making the demand reasonable.
To address concerns about productivity, the unions have stated that bank employees are willing to work an additional 40 minutes each day from Monday to Friday, ensuring no loss of total working hours. The UFBU believes that a five-day workweek will not only improve employee well-being but also align the banking sector with the future of work, where employee satisfaction is considered crucial for business outcomes.
In the lead-up to the strike, the UFBU has organized various mobilization activities, including member meetings, social media campaigns, badge-wearing protests, and press conferences. Despite these efforts and previous discussions with the IBA, the unions claim that there has been no tangible progress in the past nine months, leaving them with no option but to resume their agitation.
Conciliation meetings held on Wednesday and Thursday under the Chief Labour Commissioner, involving representatives from the Finance Ministry, IBA, and UFBU, failed to produce a resolution, solidifying the unions' decision to proceed with the strike. The strike is scheduled to commence at midnight on January 26 and end at midnight on January 27.
