CBZ retrenchment plot hits a snag; matter referred back to Retrenchment Board
Business Reporter
PLANS to lay off 347 workers by the country’s largest financial institution, CBZ Holdings Wednesday hit a snag after workers rejected the packages on offer prompting the referral of the matter to the Retrenchment Board.
Early this month, CBZ Holdings announced its plans to lay off the workers, following a restructuring exercise, which is in line with the institution’s pursuit of a new business model.
It now appears that the divorce announcement was rushed considering that parties are yet to agree on retrenchment packages.
Earlier this week, The Humanitarian Post exposed the deep-seated disagreements between the bank’s management and employees.
Highly placed sources within the CBZ management said marathon meetings to settle for an amicable agreement Wednesday hit a snag after parties failed to agree and declared a deadlock, which now requires the intervention of the Retrenchment Board.
A leaked document outlining the proceedings of the meeting shows that the bank rejected to pay a minimum retrenchment package of US$16 000.
The employees went down and placed the minimum package at US$12 000 which the employer rejected again.
The employer also turned down the demand to honor a service pay package of five months’ salary for every year served , promptimg the emplopyees to go down three and a half months which the employer still rejected insisting that they can only go as far as two months.
While the employee demanded a relocation allowance of three months’ pay and three months’ notice to those in company houses the employer remained stuck on just three months, the employer rejected the demand , opting instead to pay just one month’s salary towards relocation which is barely insufficient to meet the expenses.
On Gratuity, the employees demanded six months’ salary which the employer rejected in totality.
The demand to pay Medical Aid for the outgoing workers up to the maximum retirement age was rejected with the employer instead opting to pay up to three months when the notice period expires. The workers contend that the offer is way below the sector’s best practices with records showing that medical aid is often paid for six months post retirement or disengagement.
CBZ Bank Insiders told our publication that outgoing workers are pressing on their demands basing on the fact that the employer has opted to terminate their contracts out of the luxury need to pursue a new business model as opposed to normal retrenchment reasons where contracts are terminated because of operational hardships.
“The resultant effect of today’s negotiations is that the employer will now approach the Retrenchment Board to advise of the deadlock. They will also proceed to pay the minimum package, the quantum of which is yet to be established,” the document added .
