Banking Services in Gujarat to Face Major Disruption on January 27 Due to Nationwide Strike
The banking sector in Gujarat is set to experience significant disruptions on January 27, 2024, as the United Forum of Bank Unions (UFBU) has called for an all-India strike. This umbrella organization, representing nine major unions of bank employees and officers, is demanding the implementation of a five-day working week across the banking industry.
Widespread Participation Expected Across Banking Institutions
The strike is expected to see participation from approximately 8 lakh employees and officers working in various banking institutions, including public sector banks, private banks, foreign banks, regional rural banks, and cooperative banks. In Gujarat alone, an estimated 85,000 banking professionals are likely to join the protest, potentially bringing banking operations to a standstill in the state.
This industrial action will result in banks remaining closed for four consecutive days from January 24 to January 27, creating an extended period of limited banking services for customers across the region.
Core Demand: Implementation of Five-Day Work Week
The primary demand of the striking unions centers around the formal implementation of a five-day working week in the banking sector, with all Saturdays declared as holidays. Currently, banking institutions observe only the second and fourth Saturdays as non-working days, while the first, third, and fifth Saturdays remain operational.
The United Forum of Bank Unions has emphasized that this demand was already recommended by the Indian Banks Association (IBA) under a memorandum of understanding signed on December 7, 2023. This recommendation was further reiterated in the settlement and joint note dated March 8, 2024, creating expectations among banking professionals that the change would be implemented promptly.
Historical Context and Previous Agreements
According to senior UFBU officials, an agreement was reached in 2023 that would have increased daily working hours from Monday to Friday by 40 minutes in exchange for declaring the remaining Saturdays as holidays. However, formal approval for this arrangement was not granted for over two years, leading to frustration among banking employees and officers.
The unions have pointed out that several other financial institutions and government offices already follow a five-day work week, including:
- Reserve Bank of India (RBI)
- Life Insurance Corporation of India (LIC)
- General Insurance Corporation (GIC)
- Major stock exchanges
- Various government offices
Customer Impact and Digital Banking Alternatives
While the strike will undoubtedly cause some inconvenience to banking customers, the UFBU has noted that with digital banking options now widely available, customers should not face major disruptions in their financial transactions. Online banking platforms, mobile banking applications, and ATM services are expected to remain operational, providing alternatives for essential banking needs during the strike period.
The banking unions have expressed hope that their collective action will prompt government authorities to formally approve the five-day work week proposal that has been pending implementation for an extended period.
