The organised labour yesterday has vowed to cripple banking operations over ongoing mass retrenchment of workers in the sector after the expiration of the 21-day ultimatum issued to some banks.
The labour unions threw their weight behind the threat by the federal government through the Minister of Labour and Employment, Senator Chris Ngige, to withdraw their (banks) licences that breached its directive to halt further retrenchment.
At a joint briefing in Geneva, leaders of Nigeria Labour Congress (NLC), and the Trade Union Congress of Nigeria (TUC), insisted that they would picket banks that indulge in further mass sack of their employees, saying that the federal government was right to have threatened erring banks with withdrawal of their licenses if they refused to halt the gale of mass retrenchment of workers.
Speaking at a briefing at the venue of the ongoing 105th International Labour Conference (ILC) in Geneva, Switzerland, both labour unions contended that just like the banks disobeyed the laws of the country and retrenched workers “we will picket them to show them that they do not have monopoly of law of disobedience.” Both Ayuba Wabba and the TUC President, Bobboi Kaigama, who frowned at the refusal of the banks to allow their workers to unionised, according to the News Agency of Nigeria (NAN), said the pronouncement of Ngige was expected, arguing that it was not the responsibility of the Senate Committee on Banking to invite the minister and others for a meeting since the issue fell within industrial relations.
Speaking in Geneva while addressing journalists on the sideline of the on-going 105th session of the ILC, Ngige said, “The federal government gave the licences to the banks to operate and if its directives are not adhered to the licences will be withdrawn if the need arises,”
‘We know what to do. After all the banks have the licences given by the government. We know what to do. They need to comply.
‘Financial institutions need to negotiate. We want them to maintain the status quo. As far as I am the minister of labour I will protect the interest of workers’’ the minister said.
He said the unions were also cautioned when necessary and that he had directed the union not to picket the banks because of the retrenchment issue. He said any bank worker removed from work had about 10 members of family to cater for and the government would not want more people in the unemployment market.
He said that employers, government and the union must negotiate before any retrenchment. “ If you are going to lay off there is a way to declare redundancy, there is a process. Section 20 of the labour Act says it. You must call the unions and discuss with them. You don’t just treat them as slaves in their own country,’’ Ngige said.
He also cautioned the managements of telecommunication companies, said to be compiling lists of staff they will retrench without discussing with anybody, against such action.
Meanwhile, the Central Bank of Nigeria (CBN) through its Bankers’ Committee said on Thursday it was working hard to minimise the rate of mass sacking in banks within the shortest time possible.
The Managing Director, Standard Chartered Bank, Bola Adelola, said the mass sacking in the sector was part of the issues discussed during committee’s meeting. She said while the banks understood the economic situation in the country, there would always be reasons for workers to be relieved of their jobs. “On the recent news item on retrenchment, we also discussed it and obviously banks understand the implications of people not being in employment. We know what the situation is like in the country.
“Thus, we are looking at ways of ensuring that we minimise many exits from our institutions. There will always be exit as you know because there is fraud and so on and so forth.
“So we have noted the market sentiments and I am sure that going forward it will be different,” she said. Mrs. Adesola said the framework for a National Collateral Registry was almost ready and when released, it would facilitate the easy access of loans by bank customers.
Based on the guidelines, she said those seeking loans from banks could use movable assets such as vehicles, fridges, and other home appliances as collaterals. “You are all aware that the Central Bank of Nigeria is developing a National Collateral Registry. I am pleased to say that they have put the framework in place and the technology.
“They have begun to engage stakeholders and we should expect a role out of the collateral registry being available to banks to register movable assets that they lend against. A policy statement will be issued shortly. And we expect that will make more robust the banks’ credit process in lending to customers against movable asset,” she said.
