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Former employees that were retrenched by BancABC are demanding to be paid full compensation as opposed to three months salaries

Business Reporters
BANC ABC workers who lost jobs after their contracts were terminated on three month’s notice demonstrated at the bank’s head office in Mount Pleasant on Wednesday demanding their benefits and accusing the bank of acting in bad faith.

The former workers claimed that the banking group was given $10 million by new investor, Bob Diamond, to meet the cost of their retrenchment, but terminated their contracts without compensation.

About 131 workers lost jobs after their contracts were terminated on three months’ notice pay following the July 17 Supreme Court ruling with most the money due to them allegedly having been deducted for loans that they had taken.

Zimbabwe Banks and Allied Workers Union treasurer Mr Paul Mutsatsa said the union was surprised by BancABC’s decision to lay off workers without compensation yet it is splashing over $1 million annually on sponsoring football clubs.

“We are bemused by the fact that the bank’s already embarking on a massive recruitment exercise soon after these unlawful terminations which exposes the banks mala fide intentions,” he said.

He added that instead of paying the affected employees reasonable packages, the bank rather opted to recover loans from the meagre three months notice pay and threatening to attach workers properties over balances.

“The fact that the terminations mainly targeted trade union and workers committee members is direct violation of labour standards and anti-discrimination legislation,” Mr Mutsatsa said.

He said that the union is cognisant of the fact that Atlas Mara is now the new major shareholder and accordingly the bank is undergoing a rebranding exercise. ZIBAWU, Mr Mutsasa said, was aware of the fact that BancABC needed to promote the corporate well-being of its new brand in the face of the Government, but should restructure using lawful and fair mechanism for mutual gains.