Skye Bank sacks 175 workers despite Ngige’s order …NECA directs members to ignore Minister

By Wole Tokede

Despite the recent order by the Minister of Labour and Productivity, Dr. Chris Ngige, against ongoing unbridled retrenchment exercise in the banking industry and other financial institutions, Skye Bank Plc on Monday sacked 175 of its workers.

The bank in a statement confirmed the development and explained that the affected workers failed the year 2015 appraisal exercise.

According to the statement, a combination of factors was taken into consideration in the annual exercise, which ranged from low productivity to disciplinary issues, adding that the affected employees were duly exited in line with the bank’s staff exit policy.

The statement continues: “The staff disengagement exercise is coming a year after the bank’s successful integration with the erstwhile Mainstreet Bank, which it acquired in October 2014; the integration exercise described by analysts as a landmark in Nigeria’s banking industry has significantly improved Skye Bank’s ICT capacity and helped strengthen the bank’s service delivery.

“The bank extended its appreciation to the affected staff for serving the bank, describing them as members of the family who will always be accorded deserving respect in their future dealings with the bank.”

According to the statement, Skye Bank is adjudged by the Central Bank of Nigeria as one of the systemically important banks with over N1.3tn balance sheet, and has over 400 branches.

Recently, Diamond Bank Plc sacked over 200 members of its workforce even as Ecobank Nigeria sacked over 1,040  and FBN Holdings, the parent company of First Bank of Nigeria Limited recently said it would soon reduce its workforce by 1,000.

This development made Ngige to issue a directive to  banks to stop the retrenchment exercise but the Nigeria Employers’ Consultative Association (NECA) has reacted  condemning the directive.

The Director-General of NECA, Mr. Olusegun Oshinowo, says: “the labour law of the land does not empower the Minister to issue such a directive, which he considers uninformed and “populist”. He added that the Labour Laws had envisaged redundancy situation and, therefore, made provisions in section 20 of the Labour Act to guide the actions of the parties in the event of retrenchment or redundancy.

“The Minister seems not to have shown understanding of the fundamentals of industrial relations and Labour Laws in Nigeria and thus, has acted ultra vires.”

The body pointed out that no employer will take pleasure in declaring redundant employees, which it has invested significant resources in developing over the years. “Usually, redundancy exercise is foisted on employers on account of an unhealthy economy and the dynamics of the business, which often demands staff rationalisation.

The Voice of the Business reminded the Minister that it is part of the inalienable right of an employer to determine the optimal staff level it requires to sustain its operations’, the body said, adding: “the right to hire and fire within the rules governing such employment contract. Employers’ rights are Employers’ Prerogatives, which are not subject to Ministerial directives.”

NECA pointed out: “where an Employer has found it necessary to carry out retrenchment, it would respect the laws of the land and the laid down procedures for redundancy”.

“Employers’ expectation from the Minister of Labour and Employment is that he will work hand in hand with other Government Ministries in the establishment of the desired enabling environment to ensure business sustainability, competitiveness and job creation.”

“the Ministry of Labour and Employment runs on the principle of tripartism, which entails regular interactions with Trade Unions as represented by NLC/TUC, the Employers as represented by NECA, and Government as represented by the Federal Ministry of Labour and Employment. The Ministry is expected to respect the rights and interests of Employers and Workers alike on issues that relate to Labour and Industrial Relations.”

The body express disgust in “the way and manner the Minister has been running the affairs of the Ministry without respect to the prerogative and rights of enterprise as employers of labour.”

According to him, “for a long time, employers have been advocating that the Ministry should be headed by a technocrat in order to avoid the kind of disposition being displayed by the Minister which tends towards “populism” and “partisanship” rather than professionalism.” NECA said it has written to its members to ignore the illegal directive from the Minister.