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Public Sector Bank Employees Strike amid PLI scheme dispute
The strike by public sector bank employees across India applies on September 11 amid a dispute over the proposed Performance-Linked Incentive (PLI) scheme. The Ministry of Finance authorises putting the proposed PLI scheme on hold pending further discussions after a September 8 meeting with Union Finance Minister Nirmala Sitharaman and Department of Financial Services officials.
PLI Scheme for Public Sector Bank Employees:
| Dimension | Key Details |
|---|---|
| Nodal Authority | The Department of Financial Services authorises a revised PLI scheme in November 2024. |
| Applicability | The revised PLI scheme applies to public sector bank employees for 2025-26. |
| Coverage | The revised PLI scheme applies only to Scale IV officers and above. |
| Benefit Ceiling | The revised PLI scheme provides for PLI of up to 365 days of basic pay for eligible senior officers, depending on individual performance. |
| Existing PLI Formula | The existing PLI formula provides for 15 days of basic pay plus dearness allowance. |
| 2020 Agreement Reference | The 2020 agreement between bank unions and the Indian Banks’ Association provides for PLI linked to the overall performance of individual banks, and applies uniformly to employees and officers. |
| Core Dispute Point | The revised PLI scheme regulates incentives with greater emphasis on the individual performance of Scale IV officers and above. |
| Other Major Demands | The unions’ demands comprise implementation of a five-day work week, a uniform dearness allowance formula for all pensioners, an option for NPS-covered employees to shift to OPS, revision of ex-gratia payments, and medical facilities for retired employees. |
| Five-Day Work Week Proposal | The 2024 proposal provides for increasing daily working hours by 40 minutes so the total number of working hours per week does not decline. |
| Meeting with Government | The September 8 meeting comprises a delegation of bank employees, Union Finance Minister Nirmala Sitharaman, and officials of the Department of Financial Services. |
| Immediate Impact on Banking Services | Services affected comprise cash deposits and withdrawals, cheque clearance, administrative and branch-level work, and other physical banking services. |
| Strike Timing | The disruption window comprises September 11 (Friday), the second Saturday, Sunday, and a public holiday in several States on September 14 for Ganesh Chaturthi. |
| Proposed Future Industrial Action | The unions’ warning comprises a 3-day nationwide strike from September 28 to 30, and a continuous indefinite strike from October 26. |