No commitment to 5-day workweek made for banks: Indian government
What's the story
The Indian government has denied any commitment to a five-day workweek for banks. A finance ministry source told Moneycontrol that the issue was never discussed during wage settlement negotiations. The clarification comes as bank employees prepare for a nationwide three-day strike from September 28, in support of their demand for a shorter workweek.
Disagreement
IBA's alleged agreement refuted by finance ministry source
Bank unions have claimed that the Indian Banks's Association (IBA) agreed to a five-day workweek, with Saturdays as holidays. This was part of a wage settlement signed in March 2024.
However, the finance ministry source refuted these claims, saying no such agreement was made and that the demand was pushed unilaterally by employee unions without mutual consent during negotiations.
Negotiation body
Contradictory statements on 5-day workweek
The IBA is a management-led body that represents banks and negotiates wages and service conditions with employee unions.
The United Forum of Bank Unions (UFBU), which claims the five-day week was agreed upon, is an umbrella coalition of nine major staff and officer unions in the banking sector.
However, the finance ministry source's comments contradict All India Bank Officers' Confederation (AIBOC)'s general secretary Rupam Roy's earlier statement about Saturday being declared a holiday as part of a wage revision settlement.
PLI controversy
Revised performance-linked incentive scheme opposed by unions
The five-day workweek isn't the only point of contention between the government and bank unions. The unions have also opposed a revised performance-linked incentive (PLI) scheme for senior officers.
This was put on hold for the current financial year after Finance Minister Nirmala Sitharaman met employee representatives on September 8.
The department of financial services had notified this revised PLI scheme on November 19, 2024, applicable for FY26.
Strike continuation
Banking unions to proceed with strike
Despite the government's denial, banking unions have remained firm on their demand for a five-day workweek and are going ahead with the strike.
The unions include AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, and INBOC. Together, they represent over 90% of the banking workforce.
They have said they will call off further action only if there is a firm timeline on implementing this change.