The decision followed a meeting between the IBA and UFBU at 9:30 pm on September 27, according to a circular issued by the UFBU.
The understanding covers three broad areas, the demand to declare the remaining Saturdays as holidays, modifications to the Performance Linked Incentive (PLI) scheme for Scale IV and above officers, and other pending issues from the March 8, 2024 discussions.
However, the understanding does not mean that five-day banking has been implemented or that the PLI issue has been finally settled. Instead, the two sides have agreed to take the issues forward through discussions and a new committee.
What happens on five-day banking?
On the demand to declare the remaining Saturdays as holidays, the IBA and UFBU have agreed to form a high-level committee immediately.
According to the UFBU circular, the committee will deliberate on declaring the remaining Saturdays as holidays and examine “all possible alternatives”. It will also discuss the issue with stakeholders, including customers, with the aim of arriving at a solution acceptable to stakeholders.
At present, bank holidays on Saturdays are limited to the second and fourth Saturdays of each month. The latest understanding does not change that arrangement immediately.
The demand for a five-day banking week has been one of the principal issues raised by bank unions. The government had earlier said that the Performance Linked Incentive (PLI) scheme was being kept in abeyance, leaving five-day banking as the key unresolved demand.
What about the PLI scheme?
The other major issue relates to the PLI scheme for Scale IV and above officers.
Under the latest understanding, discussions can begin between the IBA and the unions to propose modifications to the scheme. These modifications will subsequently be proposed to the government while addressing observations raised by unions and associations.
The government had earlier announced that the PLI scheme would be kept in abeyance after discussions with the unions.
This means the latest development is a move towards reviewing and modifying the scheme, rather than an immediate implementation of a revised PLI structure.
Other pending issues to be discussed
The IBA and UFBU have also agreed to discuss the residual issues listed in the minutes dated March 8, 2024, with the aim of resolving them expeditiously, the UFBU said.
In view of the understanding, the proposed strike and other agitation programmes have been deferred.