UFBU Flags Concerns Over PNB’s Revised PLI Scheme

United Forum of Bank Unions (UFBU) raised objections to the implementation of a revised Performance Linked Incentive (PLI) scheme by Punjab National Bank (PNB) for Scale IV and above officers. In a letter dated May 16, 2025, UFBU addressed both the Indian Banks’ Association (IBA) and the Chief Labour Commissioner (CLC), stating that the move violates established bipartite agreements and undermines ongoing conciliation proceedings.

UFBU Cites Violation of Agreed PLI Terms
In its letter addressed to the IBA and the CLC, UFBU stated that the PLI scheme in banks is part of the service conditions of employees and officers, as agreed in the Bipartite Settlement and Joint Note. It covers all categories from part-time employees up to Scale VII officers. UFBU pointed out that in November 2024, the government communicated a revised PLI scheme for Whole Time Directors and for officers in Scale IV and above. The forum believes this revised scheme goes against the mutually agreed terms and has therefore raised the issue.           
Image:  UFBU’s official communication highlighting PLI dispute sent to IBA and CLC on 16th May 2025 

Issue Under Active Conciliation
The letter notes that the issue is currently under formal conciliation before the CLC. UFBU stated that previous conciliation meetings were held on April 23 and April 29, 2025, with the next round scheduled for June 16, 2025. In light of this, the forum requested that the authorities advise banks to defer the implementation of the revised scheme until the conclusion of these discussions.

Concern Over PNB’s PLI Credit
UFBU expressed concern over PNB’s reported decision to implement the PLI and credit incentive payments to staff up to Scale III, despite the ongoing dispute. The forum stated that this was done without consulting the unions and described the move as unfair and prejudicial to the ongoing proceedings.