Assam: United Forum of Bank Unions opposes DFS directive on PLI

STAFF REPORTER

Guwahati: The United Forum of Bank Unions (UFBU) has strongly objected to a recent directive issued by the Department of Financial Services (DFS) mandating public sector banks to implement Performance Linked Incentive (PLI) for officers in Scale IV and above.

In a statement, UFBU said the March 18 directive is “premature and inappropriate”, as the issue remains under active conciliation before the Chief Labour Commissioner (Central). The latest meeting, held on March 9, recorded that PLI for senior officers for FY 2024–25 remains under discussion. By issuing implementation instructions within days, the union argued, the directive undermines the conciliation process.

The forum also criticised the move as inconsistent with long-standing bipartite industrial relations in the banking sector. It noted that the directive disregards existing agreements under which PLI is uniformly linked to bank performance and replaces it with an individual performance-based model for senior officers.

UFBU raised concerns over the financial implications, stating that while the existing PLI is capped at 15 days’ basic pay plus DA for most employees, the revised scheme allows up to 365 days’ basic pay for senior officers—potentially increasing payouts nearly fifteen fold. This, it warned, could raise questions of governance, equity, and prudent resource allocation.

The union further cautioned that the move may create internal disparities, weaken workforce unity, and trigger industrial unrest. More than 95% of employees would remain under the lower PLI structure, leading to what UFBU termed a “divisive compensation framework”.

Calling for restraint, UFBU urged the DFS, the Indian Banks’ Association, and bank managements to keep the directive in abeyance and resolve the issue through established consultative mechanisms to preserve industrial harmony.

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