Sitharaman Meets Bank Union Delegation, Puts PSB PLI Scheme On Hold Ahead Of Nationwide Strike

Finance Minister Nirmala Sitharaman on Monday met a delegation of bank employees representing various public sector banks (PSBs), following which the government decided to keep the performance-linked incentive (PLI) scheme for FY2025-26 in abeyance.

The Finance Ministry said the delegation, led by the Bharatiya Mazdoor Sangh, raised several issues concerning bank employees, including a review of ex-gratia, medical facilities for retired employees and changes to the existing PLI structure for PSB employees.

Taking cognisance of the concerns raised over the incentive framework, the government decided to put on hold the implementation of the PLI scheme dated November 19, 2024, for FY2025-26.

The matter will now be taken up as part of the ongoing Bipartite Settlement and Joint Note discussions, the ministry said.

"The Government is committed to resolve issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector," it added.

PLI Dispute Ahead Of Planned Bank Strikes

The decision comes amid growing differences between bank unions and the government over the PLI framework and other pending employee demands.

The United Forum of Bank Unions (UFBU), an umbrella body of bank unions excluding BMS affiliates, has called a nationwide strike on September 11.

The unions have also announced a three-day strike from September 28 to 30 and an indefinite strike from October 26 if their demands remain unresolved.

The unions have objected to the government's PLI structure for officers in Scale IV and above. They have argued that the incentive should instead be linked to the overall performance of individual banks and applied uniformly to employees and officers up to Scale VII, based on an understanding reached with the Indian Banks' Association (IBA).

Under the government framework, officers in Scale IV and above could receive PLI of up to 365 days of basic pay depending on individual performance, while workmen employees and officers up to Scale III could receive a maximum of 15 days of basic pay plus dearness allowance.

Five-Day Banking Week Also On Agenda

The UFBU's strike programme also centres on the long-pending demand for a five-day banking week.

The unions are seeking implementation of the arrangement agreed under the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.

Under the proposed arrangement, banks would remain closed on Saturdays, with working hours from Monday to Friday increasing by 40 minutes. The unions have said the proposal has been pending with the government for more than two years.

The unions have raised other issues, including pension updation and improvement, a uniform dearness allowance formula for pensioners and an option for NPS-covered employees to shift to the Old Pension Scheme.

The PLI dispute is also before the Chief Labour Commissioner for conciliation and is being contested in the Delhi High Court.