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Redundancy package issues : First Atlantic Bank writes to Labour Department

By Justice Kofi Bimpeh
First Atlantic Bank logo
First Atlantic Bank logo
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The Management of First Atlantic Bank has clarified that it is ready to meet all demands to be inquired of the bank by the Labour Department in respect of the redundancy exercise at the bank.

According to Citinewsroom, a response from First Atlantic Bank to the Chief Labour Officer said that it is currently in discussions with the representative of some of the affected workers, John Esiape over the concerns raised in relation to the redundancy package.

“Mr. John Esiape presented our legal advisors with an estimated number of twenty-one demands on Thursday, May 16, 2019, which the Bank is considering. Thus, it has come as a surprise to us that Mr. John Esiape would serve this complaint on your high office considering that we are still in discussions with him,” portions of the document said.

The comment from First Atlantic Bank follows claims by John Esiape that the affected workers had been locked out of office despite not being paid their due and concluding on their exit package with the bank.

But First Atlantic Bank insists that some of the affected workers had already received their packages and exited the bank.

“Some of the affected workers have accepted the redundancy package and have exited the Bank peacefully. It is also important to note that apart from the workers who were initially earmarked to be affected by the redundancy, an additional number of eleven (11) workers, acknowledging the fairness of the redundancy package, voluntarily approached the Bank to be given the same package. These workers have since received their redundancy package and have also exited peacefully.”

The package comprises;

  • One and half (1.5) months basic salary for every year of service completed on a pro-rata basis.
  • One (1) month basic salary in lieu of notice period.
  • Transportation amount.
  • Pay in lieu of any unused leave entitlement up to the Exit Date.
  • Offer of a twenty percent (20%) discount on your total outstanding loan amount.

Meanwhile, First Atlantic Bank says it is ‘ready to submit to the National Labour Commission or any other competent adjudicatory body for the speedy resolution of this matter in the overall interest of both parties.’

“The Bank is committed to fair dealings with all stakeholders including its staff and has approached the matter in a conciliatory manner despite the resort to unwarranted media attacks on it and its management,” it added.

The redundancy exercise succeeded the merger between First Atlantic Bank and Energy Commercial bank in a bid to meet the new minimum capital requirement set by the Bank of Ghana.

100 workers laid off after merger

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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