The Federal Government on Friday directed all banks operating in the country to suspend the ongoing massive retrenchments of their workers and wait for the outcome of proposed meeting of stakeholders in the financial sector scheduled for next month.
Senator Chris Ngige, the Minister of Labour and Employment who said this in a statement he personally signed added that the directive followed complaints and petitions from stake holders in the sector about continuous massive lay off of workers which have flooded his office.
It will recalled that the banks in the country have in recent times embarked on massive sack of their staff following the downturn in the economy and the implementation of the Treasury Single Account by the Federal Government.
The banks had also embarked on the mass sack to cut costs following decline in their profitability.
Last Wednesday, Ecobank Nigeria Limited laid off 1040 staff, across all cadres of its staff from Junior to top management positions as a result of poor profitability over harsh economic situations.
The bank had originally planned to sack number is lower than the original planned to sack about 1,400 workers
Before then, Diamond Bank Plc had laid off 200 staff following the slump of its profit before tax for the first quarter of this year to N6.04bn, from the N7.94bn in the first quarter of 2015.
“Diamond Bank recently right sized its workforce. The right sizing was a core strategic exercise in line with the bank’s growth objective and the will to continue the drive to optimise cost and enhance value for the shareholders at the end of the business year,” the bank said in statement
FBN Holdings, the parent company of First Bank of Nigeria Limited had also began what it called a gradual reduction in the number of its workers by 1,000 to cut costs after it recorded over 80 percent decline in its profit for the 2015 financial year. Other banks have embarked on similar retrenchment of workers.
It is not clear if the banks which are struggling for survival will heed the directive of the Federal Government.
Ngige full statement reads. “Following the high spate of petitions and complaints from stakeholders in the Banking, Insurance and Financial Institutions, I hereby direct the suspension of the on-going retrenchment in the sector pending the outcome of the conciliatory meetings in the industry.
“This is as a result of the apprehension by my office of the various disputes in the sector in accordance and in compliance with the provisions of the labour laws of Nigeria.
“This decision is further predicated on the fact that the continued retrenchment and redundancy by the banks and other financial institutions are jeopardizing the outcome of the conciliatory and mediatory processes being undertaking by the Ministry of Labour and Employment.
“In this wise, all the retrenchments and redundancies done in the last four months and all proposed ones should be put on hold, pending the outcome of the proposed stakeholders’ summit for the Banking, Insurance and Financial Institutions’ employers and employees, slated for the first week of July, 2016.
“All parties are therefore advised in the interest of industrial peace and harmony to maintain the status-quo ante-belum.”