As bank employees' demand for a five-day workweek gains momentum ahead of their proposed three-day strike from Monday, the Finance Ministry has clarified that the government never committed to implementing the arrangement.
“During the last meeting regarding the wage discussion, we never committed to a five-day workweek for banks. It was never negotiated. There was no agreement; it was not discussed,” Finance Ministry sources said.
The clarification comes as bank employees across the country prepare for a three-day strike from September 28, seeking a five-day workweek instead of the existing system of six working days in alternating weeks.
Bank unions, however, have maintained that the Indian Banks' Association (IBA) agreed to a five-day workweek, with Saturdays declared holidays, during negotiations on the wage settlement.
Refuting the claim, Finance Ministry officials said most of the demands raised during the last wage-related meeting had been addressed. The All India Bank Officers' Confederation (AIBOC), however, has said that the IBA and the United Forum of Bank Unions (UFBU) had agreed to a five-day workweek during negotiations for the wage revision settlement in March 2024.
“Representatives of the DFS, Ministry of Finance informed that the Government has been taking many initiatives for the welfare of the bank employees and the issue of five days banking is also under consideration as they have to take into account the views of many other stakeholders before any decision is taken,” AIBOC said in a statement.
With no concrete decision from the government so far, the unions have called for the strike, the statement added.
The UFBU, an umbrella body of seven unions representing a majority of bank officers and employees, has called for a nationwide strike from September 28 to 30.
Other demands of the agitating bankers include improved pensions, a uniform dearness allowance formula for retirees, restoration of the Old Pension Scheme in place of the National Pension System, and resolution of pending service and wage-related issues.
The government on Monday urged bank employees to refrain from the proposed strikes over the demand for a five-day banking week, saying most concerns of unions have already been addressed through dialogue and welfare measures. The United Forum of Bank Unions and other unions had also demanded withdrawal of the Performance Linked Incentive (PLI) scheme, which the government has kept in abeyance following discussions.
The government has said PSBs recruited around 4.83 lakh employees between FY15 and FY26, while the Staff Welfare Fund was enhanced 56% in August 2024. Measures have also included higher pensions, improved medical insurance, streamlined promotions and transfers, and special leave provisions.