Banks Halt Retrenchment, Labour Hands Banks 21-Day Ultimatum to Reverse Sack

Nigerian Bankers’ Committee at their 327th meeting in Abuja on Thursday agreed to halt the spate of recent mass sack in the industry.

This came as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), declared on that they would picket banks that indulge in further mass sack of their employees.

According to the NLC, the federal government was right to have warned the erring banks with withdrawal of their licenses if they refused to halt the gale of mass retrenchment of workers.

But at the Bankers’ Committee meeting, the bankers agreed to halt the mass retrenchment in the sector.

Mrs. Tokunbo Martins, CBN Director of Banking Supervision; Bola Adesola, managing director of Standard Chartered Bank; Philip Odozua, managing Director of UBA; Emeka Emuwa, managing director of Union Bank and Isaac Okoroafor, acting director of Communications of the CBN, briefed reporters at the end of the meeting.

According to Adesola, “obviously, banks understand the implication of people not being in employment especially with what the situation is like in the country. And we are looking at ways we will ensure that we minimise exits from institutions.

“There will always be exits. People will exit the institutions. As a matter of fact, it is something we have discussed in the past with the CBN Governor prevailing on the banks to minimise any exits from the institutions.

“We have noted the market sentiments and am sure that going forward, it will be different but as I said, we must recognise also that there would be reasons why people would leave and it is not just in the banking industry- telecoms and other sectors have had this type of situation before but it is something that we would manage.”
 
Meanwhile, the Nigeria Labour Congress  and the Trade Union Congress, declared that they would picket banks that indulge in further mass sack of their employees, saying that the Federal Government was right to have warned the erring banks with withdrawal of their licenses if they refused to halt the gale of mass retrenchment of workers.

Addressing a joint press conference at the venue of the on-going 105th International Labour Conference (ILC) in Geneva, Switzerland, the two Labour groups stated that just like the banks disobeyed the laws of this country, when it comes to retrenching their (unions) members, “we will picket them to show them that they do not have monopoly of law of disobedience.”

Both Ayuba Wabba, NLC President, and Bobboi Kaigama, TUC President who frowned at the refusal of the banks to allow their workers to unionise, said the pronouncement of Senator Chris Ngige, minister of Labour and Employment, was expected.

Also, the Comrade Ajaero faction led of the NLC has given a 21-day ultimatum to the banks that have engaged in mass sack against the rules of engagement to reverse the decision or face the wrath of the workers.

“If it however after correcting themselves desires to insist on sacking the affected workers, it must comply with the laid down procedure for embarking on such unfortunate exercise. Congress will be forced to take all necessary steps to assist the banks see the need to comply with the laws of Nigerian if after 21 days of this release the illegally sacked workers are not recalled by the affected banks. We advise all affiliates and state councils to start immediate mobilisation against these banks as we work with other segments of the society to compel them to work within the ambits of our laws and the traditions and ethos governing Industrial Relations Practice in Nigeria.”

He commended the Federal Ministry of Labour for urging the banks not to lay-off their staff and the proposed penalty “but we demand that the Ministry anchors their request on the illegality of such actions which we hope was the basis for such call without which it could be meaningless.”

He said: “On the basis of this, Nigerian workers demand that the Ministry goes beyond the call and seek a reversal of the illegality. This is to avoid a dangerous precedence from being set where an employer can just wake up and sack hundreds of its workforce without recourse to the laws of the land.”