The United Forum of Bank Unions (UFBU) has requested to Finance Minister Nirmala Sitharaman for a five-day workweek for the public sector bank employees in a letter. They promise no reduction in total banking hours for customers or employees if implemented, aligning with an agreement with the Indian Banks' Association (IBA). The union highlights existing five-day weeks in RBI and LIC.
The United Forum of Bank Unions is a coalition representing bank employee unions in Bipartite Settlement with IBA , 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 Bipartite settlement.
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In their proposal, the UFBU 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 implemented 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."
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.
"You are well aware of the increasing stress under which the workforce in the Banks is doing their job. 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 favorably 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 for 12th Bipartite Settlement (12th BPS) 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 or Joint Note based on mutually agreed-upon issues, with a target of concluding this process within the specified timeframe.