Confusion as First Atlantic Bank management, workers disagree over redundancy package

By Justice Kofi Bimpeh
First Atlantic Bank
First Atlantic Bank logo

There is a disagreement between the management of First Atlantic Bank and 100 sacked workers of the bank over a redundancy package that should be paid to them prior to their exit.

According to Graphiconline, both sides have rejected the other side’s severance package proposed for the 100 workers who are being laid off by the First Atlantic Bank.

The workers first rejected a package presented by First Atlantic Bank which offered each affected worker 1.5 months’ basic salary for each completed year of service capped at 24 months; 20 per cent discount on total outstanding loan amounts, one-month basic salary payment in lieu of notice and transportation of GH¢2,000.

But after a threat of legal action against the bank, the management withdrew the offer and asked for a counter-proposal.

In their proposal, the affected workers asked for three months’ basic salary in lieu of notice, 2.5 to three months’ basic salary for each year worked, transportation of GH¢4,000, leave allowance, 13th month salary, 50 per cent discount on loans spread over four years without interest and Provident Fund for Energy Commercial Bank staff.

But the management too rejected the proposal and submitted a counter-proposal, which included 1.5 months’ basic salary for each completed year of service capped at 36 months, extension of employee’s medical cover for six months and provision of a day’s training for affected workers to deal with any psychological problems and how to manage their finances while searching for new jobs.

Laid-off workers

About 100 workers of First Atlantic Bank have been laid off after the bank completed its merger processes with Energy Bank.

According to Media reports, the merger of the two banks is said to have led to duplication of roles, leading to the redundancy.

Also, a restructuring of the bank’s operations resulted in the closure of some of its branches due to strategic reasons. The processes affected the staff of both banks that were consolidated.

The reports also indicated that the figure of 100 was arrived at following recommendations from an independent consultant.

Even though negotiations are ongoing to determine the exit package for the workers, the affected staff are said to have rejected an initial severance package put on the table by the management of the bank.


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