New Delhi, September 10: Public sector bank employees are set to go on a nationwide strike on September 11, followed by another three-day strike from September 28 to 30, and an indefinite strike from October 26, despite the government putting on hold the proposed performance-linked incentive (PLI) system.
The strikes have been called by the United Forum of Bank Unions (UFBU), an umbrella organisation of seven bank employee unions, over a range of demands concerning the working conditions and service matters of public sector bank employees.
Why are employees striking?
The proposed PLI scheme was one of the key triggers behind the unions’ decision to strike. The Department of Financial Services (DFS) had announced the performance-linked incentive system in November 2024 for public sector bank employees, with the scheme applicable for the financial year 2025-26.
Bank unions opposed the move, arguing that employee incentives should not be linked primarily to the financial performance of individual banks.
The government has since announced that the PLI system is being put on hold. However, the unions have decided to proceed with the September 11 strike as they maintain that the withdrawal of the scheme does not address their other outstanding demands.
Strike schedule
The UFBU has announced multiple phases of industrial action.
• September 11: Nationwide strike
• September 28-30: Three-day nationwide strikeFrom
• October 26: Indefinite strike
The unions have said the phased programme is intended to press the government and the concerned authorities to address their demands.
PLI scheme remains a key issue
The PLI proposal had sought to introduce a performance-based component into the compensation structure of public sector bank employees.
The unions have consistently opposed the proposal, maintaining that the performance of a bank depends on several factors beyond the control of individual employees.
They have also raised concerns over linking employee remuneration with profitability and other financial parameters.
Although the government has put the scheme on hold, the unions’ broader concerns remain unresolved.
Other issues behind the protest
The strike is not confined to the PLI issue. The UFBU has raised several service-related and employment concerns affecting bank employees.
The unions are also seeking action on issues related to staffing, workload, recruitment, working conditions and other service matters. They have argued that public sector banks have been facing increasing workloads amid changes in banking operations and greater digitisation.
Employee organisations have also been pressing for adequate recruitment to fill vacancies and reduce pressure on existing staff.
What happens next?
With the government having put the PLI proposal on hold, attention is now on whether further discussions with the banking unions can resolve the remaining issues before the subsequent phases of the strike.
If the unions proceed with the announced programme, banking services across public sector banks could be affected during the strike dates, particularly if participation is widespread.
The September 11 action is therefore likely to serve as an immediate test of the government’s ability to address the unions’ broader grievances, even as the PLI issue that initially prompted the protest has been put on hold.
