Amid calls for 5-day week in banks, IBA invites employee unions for signing of wage settlement

The Indian Banks Association or IBA has invited bank unions to sign the wage revision settlement at Chennai on 11th March, 2024. CH Venkatachalam, the general secretary of AIBEA of All India Bank Employees' Association has informed this through a post on social media., saying IBA has invited United Forum of Bank Unions to sign the wage revision settlement. It is to be noted that United Forum of Bank Unions, a coalition representing bank employee unions, had earlier written a letter to Finance Minister Nirmala Sitharaman, urging for the implementation of a five-day working week in banks. Currently, banks operate with closures on the second and fourth Saturdays each month, as established in a 2015 settlement.

It is to be noted that according to a MoU signed in December between bank employee unions and IBA, the banks association had consented to a 17% wage increase, resulting in an additional wage bill of Rs. 12,449 crore. They had also agreed to seal the final settlement in 180 days.

"Subsequently, discussions were held regarding the allocation of this agreed-upon amount to various categories and components, leading to the signing of the Cost Sheet on January 12, 2024. Following this, the settlement drafting process commenced, and by February 13, 2024, it was largely finalized," he said.




Venkatachalam also informed that details of the Settlement will be provided through social media channels after the settlement is signed.

Bank employee unions seek for 5-day week

The United Forum of Bank Unions, a coalition representing bank employee unions, recently addressed a letter to Finance Minister Nirmala Sitharaman, advocating for the adoption of a five-day working week in banks. In their proposal, the United Forum of Bank Unions assures that the transition to a five-day week will not result in a reduction of total banking hours for customers or in the total working hours for employees and officers.

The union has urged the finance minister to review the matter favorably and instruct the Indian Banks' Association to proceed accordingly. They highlighted that the five-day week is already in practice in RBI and LIC.

Regarding the memorandum of understanding (MoU) signed between the Indian Banks' Association and bank unions on December 7, 2023, it pertained to wage revision and service condition enhancements for bank personnel. This agreement resulted in a 17% increase in wages across all public sector banks in India, totaling Rs 12,449 crore. Approximately nine lakh employees, including 3.8 lakh officers, spanning PSU banks such as SBI and select old-generation private banks, stand to benefit from this hike. Negotiations held on December 7, 2023, led to the signing of the MoU, with a commitment to finalize the wage revision within 180 days.