Nationwide bank strike announced: UFBU calls multi-phase shutdown over 5-day work week, PLI scheme

The United Forum of Bank Unions (UFBU), an umbrella body representing major bank employee and officer unions, has called for a nationwide shutdown across public sector banks to press for two primary demands. As per reports, the unions have outlined a three-phase agitation campaign following unaddressed grievances with the government and bank managements. The escalation begins with a one-day all-India strike scheduled for 11 September 2026, followed by a three-day shutdown from 28 to 30 September. Should their demands remain unaddressed, the UFBU has warned of launching an indefinite nationwide strike starting from 26 October onwards.

Five-Day Week Demand Awaits Notification

A primary catalyst behind the agitation is the long-delayed implementation of a five-day work week across the banking sector. According to a circular issued by the UFBU, the Indian Banks' Association (IBA) formally agreed to introduce five-day banking in the 12th Bipartite Settlement and 9th Joint Note signed on 8 March 2024. Under the agreed terms, daily working hours would be extended by 40 minutes from Monday to Friday in exchange for declaring all Saturdays as official holidays. However, more than two years after the signing of the agreement, the proposal remains stuck awaiting final government approval and notification.

Unions Oppose Revised PLI Framework

Alongside the five-day week demand, the UFBU is calling for the immediate withdrawal of the Department of Financial Services (DFS) revised Performance-Linked Incentive (PLI) framework. The unions have condemned the revised scheme as discriminatory, noting that it offers incentives of up to 365 days of basic pay to officers in Scale IV and above based on individual performance evaluations. Conversely, workmen employees and junior officers up to Scale III are limited to a maximum payout of 15 days of basic pay plus dearness allowance. The UFBU contends that the PLI scheme must be based on overall bank performance with a uniform allocation across all scales. With the PLI issue currently under conciliation before the Chief Labour Commissioner and subject to litigation in the Delhi High Court, the unions are urging the government to engage in bilateral discussions to resolve residual demands, including pension updates and uniform dearness allowance formulas.