UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

In a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands.

The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees.

Key Issues Behind the Proposed Strike

The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included:

Five-Day Workweek for Bank Employees: One of the most anticipated demands was the implementation of a five-day workweek for bank employees. The UFBU argues that in line with many other sectors, bank employees deserve a shorter workweek to promote better work-life balance and improve overall employee satisfaction.

Adequate Recruitment Across All Cadres: The unions also raised concerns about inadequate recruitment in the banking sector, leading to an overwhelming workload for existing employees. They called for recruitment drives to ensure that all cadres are sufficiently staffed, preventing burnout and ensuring better service delivery.

Amendments to the Gratuity Act: Another key issue on the table was the proposed amendment to the Gratuity Act. UFBU has been advocating for a raise in the gratuity ceiling to Rs 25 lakh, bringing it on par with the benefits offered to government employees. Additionally, the unions are pushing for gratuity to be exempt from income tax, ensuring that employees receive the full benefit of their years of service.

Concerns Over Performance-Linked Incentives (PLI): The unions expressed concerns about the recent directives from the Department of Financial Services (DFS), which have introduced new performance review systems and performance-linked incentives (PLI). The unions argue that these changes are divisive, creating competition among employees and undermining the spirit of teamwork. Moreover, they fear that these incentives could impact job security by linking salaries and bonuses too heavily to individual performance rather than overall institutional health.

Job Security and Fair Treatment: Bank employees have been increasingly concerned about the growing emphasis on performance metrics, which they believe could compromise their job security and lead to unfair treatment. With job stability at risk, employees felt that the strike was the only recourse to raise awareness about these issues.

Outcome of the Conciliation Meeting

In light of these significant concerns, the Chief Labour Commissioner organized a conciliation meeting on March 21, 2025, bringing together representatives from the UFBU, the IBA, and the Finance Ministry. During the meeting, both the Ministry of Finance and the IBA assured the unions that they would review and discuss the demands further.

The assurance to deliberate on issues like recruitment, the implementation of the five-day workweek, and the PLI system helped alleviate tensions. Importantly, the government and the IBA also pledged to consider amendments to the Gratuity Act, an issue that has been a long-standing point of contention.

As a result of these positive assurances, the union leaders decided to defer the two-day nationwide strike, which would have disrupted banking operations across the country. This decision was seen as a sign of hope that the issues raised by the unions will be addressed in the coming weeks.

The IBA has been asked to submit a progress report by April 22, 2025, detailing the actions taken to address UFBU’s demands. This hearing will be a crucial moment in determining whether the promises made during the conciliation meeting are followed through.

Further discussions will also continue on other unresolved issues such as recruitment strategies, the impact of PLI on job security, and the overall working conditions of bank employees. The Chief Labour Commissioner will directly oversee the five-day banking implementation.

Below are the demanding and opposing key points are as per Bank Union Strike Circular dated 07.02.2025 - 

DEMANDING:

• Adequate recruitment in all cadres, regularize all temporary employees

• Implementation of 5 Day work week in Banking Industry

• Immediate withdrawal of the recent DFS directives on performance review and PLI, which threaten job security, create division and discrimination amongst employees and officers, violate the 8th Joint Note, and undermine PSB’s autonomy

• Safety of Bank Officers/ Staff against the assault/ abuses by unruly banking public.

• Fill up the post of Workmen/ Officer Directors in PSBs.

• Resolution of residual issues pending with IBA

• Amend Gratuity Act to increase the ceiling to Rs 25 lacs on the lines of Scheme for government employees along with exemption from income tax

• Do not recover income tax on staff welfare benefits given to employees and officers on concessional terms. Managements to bear the same.

• Maintain a minimum of 51% of Equity Capital in IDBI Bank by Government

OPPOSING:

• Micromanagement of PSBs by DFS on policy matters affecting service conditions of employees and officers and undermining bilateralism .

• Outsourcing permanent jobs in Banks

• Unfair Labour Practices in Banking Industry.