Federal government has directed banks to stop ongoing rationalisation of its work force following high spate of petitions and complaints from stakeholders in the Banking, Insurance and Financial Institutions.
The directive, which was issued yesterday through Senator Chris Ngige, the Minister of Labour and Employment, said the suspension was necessary until current efforts to resolve problems in the financial sector were exhausted.
“I hereby direct the suspension of the on-going retrenchment in the sector pending the outcome of the conciliatory meetings in the industry.
This is in accordance and in compliance with the provisions of the labour laws of Nigeria.
This decision is further predicated on the fact that the continued retrenchment and redundancy by the banks and other financial institutions are jeopardizing the outcome of the conciliatory and mediatory processes being undertaking by the Ministry of Labour and Employment,” the statement signed by the minister said.
Nigerian Pilot Saturday recalls that within the last couple of weeks, Ecobank had reportedly sacked 1000 staff, Diamond Bank only last week allegedly retrenched 200 in addition to several hundred said to have been forcefully sent home.
All the first generation banks and new ones have in recent times reportedly embarked on staff rationalisation in swift reaction to the harsh economic situation, largely due to federal government’s operation of the Transfer Single Account, TSA, which has narrowed accruable to the banks.
According to bankers, the federal government has been banks’ main customer, adding that the introduction and enforcement of the TSA has reduced patronage and limit earnings.
Nonetheless, the federal government statement went on: “ In this wise, all the retrenchments and redundancies done in the last four months and all proposed ones should be put on hold, pending the outcome of the proposed stakeholders’ summit for the Banking, Insurance and Financial Institutions’ employers and employees, slated for the first week of July, 2016.
“All parties are therefore advised in the interest of industrial peace and harmony to maintain the status-quo ante-belum.”
Banks are yet to respond to the directive.

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  • iheanyi

    That’s more like what this government has to offer. How can a government just by pronouncement decide for companies who to employ or sack. Is government running the companies? Government should fix the economy and create the enabling environment for companies to operate. There are civil processes already in place for disputes to be addressed.