Business Reporter
NMBZ Bank Limited’s bid to lay off 51 employees has culminated in a deadlock following the failure to reach an amicable solution by parties undertaking the negotiations.
The Zimbabwe Banks and Allied Workers Union (ZIBAWU) is representing the employees side.
The latest retrenchment exercise is among several strategic decisions being pursued by the banking sector which now enjoys the lucrative benefits emanating from technological advancements, pushing most financial institutions to positions where they no longer need more employees.
Documents seen by The Humanitarian Post confirm that NMB’s bid to lay off 51 workers deadlocked recently over some outstanding pressing issues.
A letter dated April 5 2025 signed by the NMB Bank Limited’s Head of Human Capital, Amanda Mukungunugwa revealed the parties to the negotiations failed to come up with an agreement prompting the NMB to unilaterally proceed with the payment of the minimum one month’s salary for every year served exercising rights enshrined under section 12C (1) of the Labour Act.
Reasons cited by NMB Bank Limited to justify the retrenchment exercise were that between August 2023 and November 2024, the Bank conducted a comprehensive Human resources review of the company’s operations resulting in the development of a new business strategy and the subsequent restructure ,as well as the alignment of operating business model with evolving operating landscape and economic environment.
“As a result, the decision has been made to terminate employment contracts through retrenchment in accordance with Section 12C (3) of the Labour Act (Chapter 28:01),’ said Mukungunugwa in the letter.
The targeted employees are demanding a three months’ salary per every year served. Other pressing issues include the payment of second term fees for the employees, annual bonus prorated up to June 2025 based on individual performance which the bank denies at the insistence of a pro-rated annual bonus to March 2025.
One of the affected employees who preferred anonymity implored NMB to be considerate.
“Imagine, I served this institution with dignity. They are not even struggling after all. The reasons prompting this retrenchment exercise are luxurious since they say they are pursuing a new business model. We assisted them to rake in huge profits over the years so they have to treat us with the dignity we deserve as we part ways,” the employee said.
In the period ending December 31 2024, NMB revenue was ZWG 2.4 billion, up 26% from ZWG 2 billion for the prior year, largely driven by gains on foreign exchange positions.
The Group achieved profit after tax of ZWG 42.8 million compared to ZWG1.2 billion for the previous period. Total assets closed the period at ZWG 7.1 billion, up 8% from ZWG 6.5 billion for the comparative period attributable to an increase in foreign credit lines as well as deposits.
