The United Forum of Bank Unions, a coalition representing bank employee unions, has written a letter to Finance Minister Nirmala Sitharaman, urging for the implementation of a five-day working week in banks. Presently, banks operate with closures on the second and fourth Saturdays each month, as established in a 2015 settlement.
In their proposal, the United Forum of Bank Unions assures that if the transition to a five-day week is sanctioned, there will be no reduction in total banking hours for customers or in the total working hours for employees and officers. This stance aligns with an understanding reached with the Indian Banks’ Association.
The union has urged the finance minister to review the matter favorably and direct the Indian Banks’ Association to advance proceedings accordingly. The United Forum of Bank Unions said that the five-day week is already in vogue in RBI and LIC. The bank employee union said that it was agreed during the 2015 settlement to “consider our demand for declaring remaining Saturdays as holidays at a later stage after implementing the provision for holidays on two Saturdays in a month.”
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.
Expressing gratitude for the favorable consideration of their demands by the finance minister and the government, the United Forum of Bank Unions acknowledges the timely conclusion of negotiations, facilitated by the memorandum of understanding between bank unions and the IBA.
Also read – IBA, bank employee unions agree to 17% salary hike, latest on 5-day week proposal: 10 points
“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 United Forum of Bank Unions said.
MoU between IBA, bank employee unions
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. Furthermore, the merging of Dearness Allowance with basic pay and an additional 3% loading will result in a total increase of Rs 1795 crore.
