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5-day week for banks soon? The United Forum of Bank Unions, a coalition of bank employee unions, has written a letter to Finance Minister Nirmala Sitharaman, urging for the implementation of a five-day working week in banks. The proposal assures that there will be no reduction in banking hours for customers or in the total working hours for employees and officers.

According to an ET report, the union has requested the finance minister to review the matter favorably and direct the Indian Banks’ Association accordingly. The bank employee union highlights that the five-day week is already in effect in RBI and LIC.

Currently, banks adhere to a schedule of closures on the second and fourth Saturdays of each month, as stipulated in a settlement reached in 2015. They also mention that during the 2015 settlement, it was agreed to consider the demand for declaring remaining Saturdays as holidays at a later stage.

A memorandum of understanding was signed between the Indian Banks’ Association and bank unions on December 7, 2023, concerning wage revision and service condition enhancements for bank personnel.

The United Forum of Bank Unions expresses gratitude for the favorable consideration of their demands by the finance minister and the government. They acknowledge the timely conclusion of negotiations, facilitated by the memorandum of understanding between bank unions and the IBA.

The United Forum of Bank Unions states, “You are well aware of the increasing stress under which the workforce in the Banks are doing their job in the Banks. Hence it would be in the fitness of things that the remaining Saturdays may also be declared as holidays. We shall thank you to consider the matter favourably and advice the IBA to proceed further in this regard.”

The memorandum of understanding (MoU) reached between the Indian Banks’ Association and bank employee unions last year resulted in an agreement for a 17% increase in wages across all public sector banks in India, amounting to Rs 12,449 crore.

This hike will benefit approximately nine lakh employees, including 3.8 lakh officers, spanning PSU banks such as SBI and select old-generation private banks. Negotiations held on December 7, 2023, between the Indian Banks’ Association and representatives of employee unions culminated in the signing of the MoU, with a commitment to finalize the wage revision within 180 days.

The MoU stipulates that both parties will convene to draft a comprehensive Bipartite Settlement/Joint Note based on mutually agreed-upon issues, with a target of concluding this process within the specified timeframe. Key details of the agreement include the implementation of the wage revision from November 1, 2022, for a five-year duration. The 17% increase in salary and allowances, calculated based on the fiscal year 2021-22 pay slip expenses, amounts to Rs 12,449 crore for all public sector banks, incorporating the State Bank of India. Additionally, the merging of Dearness Allowance with basic pay and an additional 3% loading will result in a total increase of Rs 1795 crore.

  • Published On Feb 26, 2024 at 08:00 PM IST

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