Absa Bank Zambia Downsizes Labour Force!

Absa Bank Zambia has initiated a downsizing of Labour ” through “Voluntary Separation Scheme” for those holding Managerial positions.

Those wishing to leave the Bank voluntarily have between today the 8th April, 2020 and 14th April, 2020 to make their intentions known.

The background is over 527 Unionized Workers at Absa Bank Zambian are working without contracts, a situation that has created fear, panic among the workers.

Absa Bank Chief Executive officer Mizinga Melu, “is reluctant” to trigger speedy settlement of redundancy packages to Former Barclays Bank employees now working under the newly launched Absa Bank Limited.

Investigations have established that the Zambia Union of Financial Institutions and Allied Workers on 30th March, 2020 wrote to Absa Bank Zambia management seeking a response on redundancy packages owed to Unionized Workers after the Barclays Bank Zambia rebranded to Absa Bank Zambia.

The Union issued a 14-day ultimatum to Absa Bank Zambia to respond to their letter surrounding redundancy packages failure to which the Union will declare a labour dispute against the Commercial Bank.

The labour laws of Zambia state that the contract of service of an employee shall be deemed to have been terminated by reason of redundancy, if the termination is wholly or in part because of the employer ceasing or intending to cease to carry on the business by virtue of which the employee was engaged or the business ceasing or reducing the requirement for the employees to carry out work of a particular kind in the place where the employee was engaged and the business remains a viable going concern.

Those in management under duress signed new contracts but conditions of service changed negatively compared to when they worked under Barclays Bank PLC.

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