Bank unions go ahead for 5-day week before Bipartite settlement

 

A five-day work week in banks is something that the United Forum of Bank Unions, a coalition that represents bank employee unions, has urged in a letter to Finance Minister Nirmala Sitharaman. As per the terms of a 2015 settlement, banks are currently closed on the second and fourth Saturdays of every month.

The United Forum of Bank Unions(UFBU) guarantees in its proposal that there would be no decrease in the total number of hours that customers can bank or that officers and workers can work if the switch to a five-day workweek is approved. This position is consistent with the agreement that was made with the Indian Banks' Association.

The union has requested that the finance minister take a positive perspective of the situation and instruct the Indian Banks' Association to move forward with the necessary steps. The five-day workweek is already popular in RBI and LIC, according to the United Forum of Bank Unions. It was agreed upon during the 2015 settlement, according to the bank staff union, 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."

On December 7, 2023, the Indian Banks' Association and bank unions signed a memorandum of understanding over pay revision and improvements to bank employees' service conditions.

The United Forum of Bank Unions notes the prompt completion of discussions made possible by the memorandum of understanding between bank unions and the IBA, and thanks the finance minister and government for taking their concerns into consideration.

"You are fully aware of the mounting pressure that the bank employees face while carrying out their duties. Therefore, it would be appropriate to declare the remaining Saturdays as holidays as well. The United Forum of Bank Unions stated, "We will appreciate it if you will take a favorable view of the situation and advise the IBA to move forward in this area.

The Indian Banks' Association and bank employee unions came to an agreement last year on a memorandum of understanding (MoU) that increased pay in all public sector banks in India by 17%, or Rs 12,449 crore. About nine lakh workers, including 3.8 lakh officers, from PSU banks like SBI and a few older private banks will gain from this increase. Following discussions between the Indian Banks' Association and labor union officials on December 7, 2023, the Memorandum of Understanding was signed, pledging to complete the pay revision within 180 days.

Also Read : 5 Days Banking Latest Update

According to the terms of the Memorandum of Understanding, both parties must gather together in order to prepare a thorough Bipartite Settlement/Joint Note based on problems that have been mutually agreed upon. The procedure must be completed within the allotted time limit. One of the agreement's main features is the implementation of a five-year salary revision starting on November 1, 2022. Based on the fiscal year 2021–22 pay slip expenses, the 17% rise in salary and benefits comes to Rs 12,449 crore for all public sector banks, including the State Bank of India. Furthermore, a total increase of Rs 1795 crore will be achieved by combining Dearness Allowance with basic pay with an extra 3% loading.

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Five Days Week- Latest Status Update

 

India's banking sector has formally proposed declaring all Saturdays as official holidays, according to confirmation from the Union Finance Ministry in Parliament today.

Responding to queries about the Indian Banks Association (IBA) seeking the implementation of a five-day work week, Minister of State for Finance, Bhagwat Karad, affirmed that the IBA had indeed submitted a proposal to this effect.

Since 2015, banks in India have observed public holidays on the second and last fourth Saturdays of every month. The demand for a five-day work week has been a prolonged one, particularly from public banks.

The IBA represents a broad spectrum of banks in India, including public and private banks, foreign banks with a presence in India, cooperative banks, regional rural banks, and all Indian financial institutions. The banking sector employs over 1.5 million individuals.

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Good news for Bankers! 5-day work week soon

 

The bank employees’ unions have constantly raised their demand for five-day working in the bank, stating to increase the number of week offs.  After repeated petitions for almost a year, now the time is probably near when banks will work only for five days a week. Apart from Sunday, there was a constant demand from the Indian Banking Association to keep it closed on Saturday as well, which has now been approved.

According to the report of The Hindu, the demand pressed by bank employees’ unions for five-day working and to declare all Saturdays as a bank holiday has been accepted by India’s Bank Association in the meeting which was held on July 28.

Now, the bank employees’ Unions body has forwarded the petition to the Finance Ministry for further approval.

If the petition would be approved by the Finance Minister then banks will be working on five days a week, and employees will get all Saturdays off. Besides, the daily working hours of all banks could be extended by 45 minutes, according to the Business Line report.

Decision awaiting

Bankers are hopeful that their proposal will soon get approval from the Finance Department. “Based on some informal conversations with the ministry, it appears that the government may not have any problem in accepting this request of the bankers’ union,” it said.

At present all banks in India work on the first, third and fifth Saturdays of the month. There are holidays on the second and fourth Saturdays. However, as of 2015, banks operate six days a week, including all Saturdays of the month.

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5 Days Banking Latest Update

 

Banks in India are likely to be open only five days a week, with proposed two day weekly offs, a decision will be made on this on 28 July. The Indian Banking Association (IBA) will likely take the decision in a meeting with United Forum of Bank Unions (UFBU) next week on Friday, according to a report.

The United Forum of Bank Unions on 19 July said that they took up the issue of introduction of five banking days in earlier discussion. "IBA informed that the issue is under active consideration of the various stakeholders and the same is being pursued. We asked the IBA to expedite the same so that five banking days per week is introduced without further delay," it said.

According to a report by CNBC, both organisations are set to discuss five-day work week, salary hike and requirement of group medical insurance policies for retirees during the 28 July meet.

Now banks are open on two Saturdays a month- the first and third Saturday banks are open in India. The UBFU has sought that working days for banks remain five days a week only, also that employees get 2 days weekly off.

The need for a five day work week came into limelight after government implemented the rule of five working days in the Life Insurance Corporation of India (LIC).

The Finance ministry of India had earlier informed that they have no objection to the UBFU's demand to a five day work week for bank employees. The Indian Banking Association had sent a proposal to the government regarding this. According to the proposal, daily working time for bank employees will be increased by 40 minutes, the CNBC report stated.

Regarding the medical insurance of retired bank employees, the UBFU had said that they have agreed to offer a base policy for Rs.2 lakh for retirees with certain ceilings and caps on bed charges/package treatments etc. This was done to ensure that the premium amount is reduced.

"Over and above this, top up scheme up to Rs.10 lakh will be made available on optional basis," CNBC quoted the UBFU. It is to be noted that banks are slated to remain closed for several days in the month of August this year. However, the online banking services and ATMs will remain open to public despite holidays.

The day offs in August include the Saturdays and Sundays in August 2023. Apart from the days mentioned in the table below, banks will remain closed on usual second and fourth Saturday.

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