CBZ workers block retrenchment of 347 employees; says it’s rushed and illegal
Business Reporter
THE Zimbabwe Banks and Allied Workers Union (ZIBAWU) has rejected plans by CBZ Holdings to offload about 206 workers arguing the top financier took the decision way outside the retrenchment regulations in a move which renders the initiative a nullity.
On the 31st of January 2025, the Employer issued a Notice of intention to retrench to its employees. Soon thereafter, the Group CEO issued a public statement advising its stakeholders that it was embarking on a retrenchment exercise where a total of 347 employees would be disengaged.
On the 4th of February 2025, the Employer sent the same notice to the Retrenchment Board under the prescribed form and identified 206 no managerial employees set to be retrenched in line with the new business model.
But responding to the employer’s plans, ZIBAWU argued said compulsory retrenchment exercise is not yet ripe for execution.
“The employer has not explored other measures to avoid retrenchment. Until about three weeks ago, the Employer intended to merge with another local bank. The process was later abandoned after the Competition and Tariff Commission raised concern over the merge.
“The impact of this exercise will leave hundreds of families destitute and without formal employment. This is the primary reason employees challenge the retrenchment process,” said the workers group.
Workers contend that the employer has not disclosed the selection criteria it used in determining the list of employees to be affected arguing it was largely discriminatory and therefore unlawful.
As a result, ZIBAWU said , the employer ought to stay this process and explore alternative ways to implement its business operating model.
“Alternatively, and in the event that the employer decides to proceed with the action, it would be prudent that the employer implements this exercise in batches so as to mitigate the drastic effects of loss of employment on the employees.
“This moreso as the selection criteria for the 206 employees has not been disclosed neither has their redundancy been demonstrated,” the workers group said.
More importantly, employees said, the employer has the financial capacity to offer a fair and reasonable retrenchment package and should accordingly do so.
ZIBAWU contends that while employers have the right to make business decisions, it is important to prioritize the well-being and livelihoods of employees and seek mutually beneficial solutions. The workers said the new business model being pursued by CBZ must be implemented in such a way that if avoids such a massive loss of employment, ensuring that the bank can achieve its financial goals while minimizing undue harm to employees and the broader economy.
The employer, the workers said, should explore alternative solutions that align with the operationalization of the new business model, such as redistributing workloads and responsibilities among existing staff to optimize efficiency and productivity.
Offering more voluntary retrenchment packages options to employees who are willing to exit the workforce voluntarily, exploring flexible work arrangements, such as reduced working hours or job sharing, to retain valuable employees while adapting to changing business needs, up skilling and reskilling exercises to avoid job losses for the affected employees.
