CHENNAI: The United Forum of Bank Unions (UFBU) on Wednesday said its agitation against the revised Performance Linked Incentive (PLI) formula had drawn a widespread response across the banking sector, with employees and officers participating in large numbers.
In a statement, the UFBU said that the response reflected strong opposition not only to the incentive structure but also the unilateral and divisive departure from the existing settlement-based PLI scheme evolved through bilateral negotiations under the Bipartite Settlement and Joint Note framework.
The unions said that the current PLI system was uniform and linked to the collective performance of banks, while the revised formula proposed differentiation and classification among officers, particularly separating Scale IV and above. This, they argued, would create disparities, weaken teamwork, and undermine established industrial relations.
The UFBU maintained that the issue was already under conciliation before the Chief Labour Commissioner (Central). During proceedings held on March 9, 2026, the payment of PLI to officers in Scale IV to VII for 2024-25 under the existing framework remained under consideration.
It said any unilateral implementation by the Department of Financial Services, the Indian Banks’ Association, or bank managements during the pendency of conciliation would be unacceptable and contrary to principles of industrial relations. The unions also raised concerns under Section 33 of the Industrial Disputes Act, stating that such action could affect settled service conditions.
The UFBU urged authorities to maintain status quo, suspend unilateral measures, and resolve the issue through dialogue and conciliation. It also called on the Chief Labour Commissioner to intervene to ensure industrial peace.
The forum warned that failure to take corrective steps could lead to industrial unrest, for which responsibility would lie with those proceeding with the revised scheme despite ongoing conciliation.