Banks to Remain Disrupted on 27 January as Unions Strike for 5-Day Work Week Demand

The United Forum of Bank Unions (UFBU) decided to go ahead with a statewide strike on January 27. The Union wants an immediate implementation of a five-day work week. Owing to this demand, the entire public sector banks' operations were impacted nationwide on 27 January.

Following the failure of a conciliation meeting with the chief labour commissioner on January 23, the UFBU, an umbrella organisation of nine unions representing officers and staff, called for a strike. The strike on Tuesday will cause branch-level services to be disrupted for three days in a row, with banks remaining closed on January 25 (Sun) and January 26 (Republic Day).

5 Day Work Culture Demand Promised but Not Fulfilled

General Secretary C H Venkatachalam of the All India Bank Employees Association (AIBEA), a member of UFBU, told PTI that despite thorough conversations during the mediation process, there was no guarantee regarding our demand. "We have therefore been forced to move on with the strike action," he added. The Indian Banks' Association and UFBU reached an agreement during the salary revision settlement in March 2024 to proclaim all Saturdays as holidays, according to Rupam Roy, general secretary of the All India Bank Officers' Confederation (AIBOC).

Roy went on to say that it is regrettable that the administration is ignoring the sincere demands of unions. Since unions have agreed to work an additional 40 minutes per day, Monday through Friday, there would be no reduction in man-hours.  According to L Chandrasekhar, general secretary of the National Confederation of Bank Employees (NCBE), another UFBU member, this movement is for a sustainable, compassionate, and effective banking sector rather than against consumers. The country benefits more from a rested banker. Financial stability is strengthened by a balanced workforce. 5-day5-day banking is a human and economic necessity, not a luxury.

What Bank Operations Will Be Affected?

It is anticipated that services like cash deposits, withdrawals, cheque clearances, and administrative activities will be impacted.  The strike will have an impact on public sector bank (PSB) branches, such as State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda. However, since the staff of significant private sector lenders like HDFC Bank, ICICI Bank, and Axis Bank do not belong to the unions that will go on strike.

Hence, their operations are anticipated to be mostly unaffected. Internet banking and UPI will be available; however, there may be regional problems with ATM cash availability because of logistical hold-ups. Stock exchanges have been notified about the possible impact by a number of public sector lenders, including the massive bank SBI. In a regulatory filing on January 23, SBI stated that the banks have made the required preparations to guarantee regular operations in its offices and branches on the day of the strike.

However, SBI continues to believe that the strike may have an effect on bank operations. The 12th Bipartite Settlement, which was reached with the Indian Banks' Association (IBA) in March 2024, purportedly agreed upon the unions' demand that all Saturdays be declared vacations; however, official notification is still pending.