What is the story about?
The Finance Ministry, on Monday, urged bank employees to refrain from resorting to strikes and resolve their remaining demands through dialogue, saying
most concerns of the unions have been substantially addressed. The appeal from the government comes ahead of a three-day nationwide strike called by the United Forum of Bank Unions beginning September 28 to press for 5-day banking and other demands. The strike, if it materialises, may impact banking services for five days as the weekend before September 28 is a holiday. It would coincide with the half-yearly closing of the banking sector.
Demands Being Examined, says Finance Ministry
The finance ministry, in a statement, said the remaining demand continues to be examined and highlighted that the welfare measures are being introduced for the banking workforce.
"Given that most concerns of the unions have been substantially addressed, that the remaining demand continues to be examined, and that the Government continues to proactively introduce welfare measures for the banking workforce, bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted," it said.
It also said that one of the main demands of the unions is withdrawal of the Performance Linked Incentive (PLI) scheme, which was put in abeyance earlier this month after detailed discussion.
Despite the Government having resolved one of the two major demands of the union, and sustained conciliatory engagement, a one-day strike was held on September 11.
Emphasising that Public Sector Banks play a vital role in the country's economic and social development, the statement said, they have been at the forefront of financial inclusion, digital banking, financial literacy and rural outreach, ensuring that formal financial services reach every section of society.
Recognising this role and acknowledging that a motivated, secure and efficient workforce is essential for a strong banking system, the Government has taken several measures aimed at improving the working environment, transparency and welfare of bank employees.
These include an increase in salary and allowances along with fixation of new pay scales for all cadres, Staff Welfare Fund (SWF), a hike in the number of executive posts at the levels of Assistant General Manager, Deputy General Manager, General Manager and Chief General Manager.
Further, to ensure prompt implementation of Wage Settlements and timely revision of bankers' salaries and allowances, the Government, for the first time, has begun negotiations for the upcoming Bipartite Settlement, aiming to complete it well in advance of the November 2027 deadline, it said.
These initiatives reflect the Government's continued commitment towards addressing the genuine concerns and welfare of bank employees, while strengthening the institutional framework and ensuring that the banking sector continues to function efficiently and effectively, it said.
Further, these measures indicate that the Government has already addressed the concerns of a substantial majority of bank employees over recent years, it added.
Saturdays Productive For Citizens To Access Banking Services
Stressing that banking as a service is relied upon by every citizen and its continuity directly affects the everyday lives of the general public, the statement said the remaining Saturdays (other than second and fourth) continue to serve as an important opportunity for many citizens to access banking services easily.
The proposed 3-day strike period also coincides with the half-yearly closing of banks on September 30, a date of particular significance for reconciliation, provisioning and treasury, and market operations. A disruption of this nature, combined with the preceding weekend, would result in an effective five-day closure of banking services at a particularly sensitive point in the financial calendar — causing considerable inconvenience to customers, businesses, Government transactions and international banking operations, it said.
Strikes cause disruption in banking services that inconvenience the public, impact the business of the bank, and ultimately harm the interests of bank employees, it said, adding that there is no fruitful outcome that is achieved through stirs.
The government assured that it remains committed to the welfare and well-being of bank employees and to addressing their genuine concerns through constructive engagement.
