Banking Reform: More Workers To Lose Jobs.

As the Deposit Money Banks in the country
continue to embrace cost-cutting measures,
indications have emerged that another
round of mass sacking is imminent in the
banking industry.
Our correspondent gathered from reliable
sources in the banking sector that more
bankers would lose their jobs because some
of the DMBs are preparing to reduce their
running costs.
A top official in one of the acquired banks
told our correspondent that the action was
inevitable.
“There’s no way some people will not lose
their jobs. For instance, after the acquisition,
some banks had two branches very close to
each other. What do you expect in such a
case?” he asked.
It was also gathered, however, that the
problem was not restricted to the acquired
banks only, as some “healthy” ones had also
adopted the measure to trim operating
costs drastically.
Another top official, who pleaded anonymity
because he was not permitted to speak
officially, said, “Banks are now adopting a
new business model to reduce their
workforce in order to cut down on their
operating costs.
“The emergence of the electronic payment
system has made it possible to work with
fewer employees.”
Access Bank Plc, which acquired
Intercontinental Bank Plc, recently
terminated the employment of over 1, 500
employees of Intercontinental Bank.
It was gathered that the basis for the mass
sacking was the new appraisal system
(Operation Just Cause), which Access Bank
introduced in Intercontinental Bank on
November 8, 2011.
In the same vein, Ecobank Transnational
Incorporation, which acquired Oceanic Bank
International Plc, disengaged an undisclosed
number of workers on Wednesday.
Enterprise Bank Limited, formerly Spring
Bank Plc, one of the nationalised banks, on
Tuesday said it had given 140 of its
employees, whose performance fell below
satisfactory level, an option to resign.
The bank had earlier introduced the
implementation of a performance-based
compensation system, which entailed the
inclusion of a variable pay among members
of staff.
When contacted, the National President,
National Union of Banks, Insurance and
other Financial Institutions Employees, Mr.
Peter Okafor, told our correspondent that
the union was on top of the situation.
Okafor said, “We have been talking to the
managements of the banks.
Although the banks have the power to hire
and fire, we will not fold our arms.
Something needs to be done. We are also
ensuring that due process is followed when
carrying out this action. If due process is not
followed, we will be forced to picket the
banks.
“When you are telling people to go, you have
to pay them what we call severance
package. In the case of Intercontinental
Bank, we are talking to them on behalf of
our members. We sat down with the
management of Ecobank too. So, we are on
top of it.”
He said the sacking in the banks was a
serious challenge to the banking sector and
the economy at large.
Okafor blamed the Federal Government for
the unemployment problems in the country,
saying, “It is the responsibility of the
government to provide jobs. All government
initiatives have not provided jobs for the
people.”