Agribank cautioned to ‘tread carefully’

LABOUR Commissioner Bro-Mathew Shinguadja has urged Agribank to “revisit” its decision to make all but one job redundant.

In terms of the decision, every single employee at the bank – except the Chief Executive Officer – has to reapply for their position. The move to restructure will make around 30 jobs redundant.Shinguadja also urged Agribank to engage the Namibia Financial Institutions Union (Nafinu) “as a matter of urgency” before moving any further with its proposed restructuring.In a letter to Agribank, the Labour Commissioner said he was “disturbed” by allegations that the bank did not consult Nafinu or was not transparent before deciding on the restructuring process.”The Namibia Financial Institutions Union (Nafinu) has a recognition and procedural agreement with Agribank but it has alleged that the current restructuring process was never negotiated with them as required,” Shinguadja wrote to Agribank Chief Executive Officer Leonard Iipumbu.According to Nafinu, Agribank did not consult them and was not transparent over the process of restructuring.Shinguadja said if the Nafinu allegations were true, it would be best for Agribank to go back to the drawing board.”Any ignorance of the existing recognition and procedural agreement that establishes basis for proper collective bargaining has a potential of degenerating into a unpalatable accusations and court battles thus inhibits progress and production at the bank,” Shinguadja said.He suggested that the bank reconsider the decision until common ground was found with the union.”This office remains at the disposal of the parties to provide them with any technical assistance and advice towards an acceptable and mutual beneficial solution,” the letter said.Nafinu said it was taking legal action because of the bank’s refusal to withdraw a decision to make all but one job redundant.The Secretary General of the National Union of Namibian Workers (NUNW), Evilastus Kaaronda, has said that the new structure was not provided to staff for them to assess the positions available.”Every time you have a unsuitably qualified person getting political appointments such as this, you have this type of problems.We call on our political leaders to seriously reconsider some of these decisions they are taking,” Kaaronda said, without mentioning Iipumbu by name.He charged that many parastatals were run by people appointed on the basis of their political connections but with hardly any knowledge of how to manage a company’s affairs.Both Kaaronda and Nafinu President David Shikulo questioned why Iipumbu was not affected by the restructuring.Alex Kamaundju, former President of Nafinu and an employee of Agribank, said they were “sarcastically told that the bank can even close for two months” without feeling any negative financial impact of the decision.The bank served 30-day notices on all employees last week, asking them to exercise their options to either take early retirement, voluntary or involuntary retrenchment if they don’t meet the requirements of the new positions.The retrenchment packages offered two weeks’ salary per year for all employees who had worked for the bank less than 20 years, while those who worked for more than 20 years get one week’s pay for every completed year.Hundred per cent medical aid fund contributions will be paid for all retrenched employees for six months and employees aged 50 years and older will be given the option to buy out their medical aid up to the age of 55 in order for normal post-retirement benefits to kick in.Study loans granted to retrenched employees will be written off and the bank offered counselling to retrenched staff.Kaaronda said the move amounted to “sabotage”.”Only one person is legally employed.Is he himself suitably qualified for the job? Why is he getting the special treatment? We are convinced the man at the helm is not suitably qualified.”There must be wholesale changes if it is so,” Kaaronda said.Agribank said the decision was taken after a study done by an independent company and law firm Conradie & Damaseb found the restructuring process “legally compliant”.The move to restructure will make around 30 jobs redundant.Shinguadja also urged Agribank to engage the Namibia Financial Institutions Union (Nafinu) “as a matter of urgency” before moving any further with its proposed restructuring.In a letter to Agribank, the Labour Commissioner said he was “disturbed” by allegations that the bank did not consult Nafinu or was not transparent before deciding on the restructuring process.”The Namibia Financial Institutions Union (Nafinu) has a recognition and procedural agreement with Agribank but it has alleged that the current restructuring process was never negotiated with them as required,” Shinguadja wrote to Agribank Chief Executive Officer Leonard Iipumbu.According to Nafinu, Agribank did not consult them and was not transparent over the process of restructuring. Shinguadja said if the Nafinu allegations were true, it would be best for Agribank to go back to the drawing board.”Any ignorance of the existing recognition and procedural agreement that establishes basis for proper collective bargaining has a potential of degenerating into a unpalatable accusations and court battles thus inhibits progress and production at the bank,” Shinguadja said.He suggested that the bank reconsider the decision until common ground was found with the union.”This office remains at the disposal of the parties to provide them with any technical assistance and advice towards an acceptable and mutual beneficial solution,” the letter said.Nafinu said it was taking legal action because of the bank’s refusal to withdraw a decision to make all but one job redundant.The Secretary General of the National Union of Namibian Workers (NUNW), Evilastus Kaaronda, has said that the new structure was not provided to staff for them to assess the positions available.”Every time you have a unsuitably qualified person getting political appointments such as this, you have this type of problems.We call on our political leaders to seriously reconsider some of these decisions they are taking,” Kaaronda said, without mentioning Iipumbu by name.He charged that many parastatals were run by people appointed on the basis of their political connections but with hardly any knowledge of how to manage a company’s affairs.Both Kaaronda and Nafinu President David Shikulo questioned why Iipumbu was not affected by the restructuring.Alex Kamaundju, former President of Nafinu and an employee of Agribank, said they were “sarcastically told that the bank can even close for two months” without feeling any negative financial impact of the decision.The bank served 30-day notices on all employees last week, asking them to exercise their options to either take early retirement, voluntary or involuntary retrenchment if they don’t meet the requirements of the new positions.The retrenchment packages offered two weeks’ salary per year for all employees who had worked for the bank less than 20 years, while those who worked for more than 20 years get one week’s pay for every completed year.Hundred per cent medical aid fund contributions will be paid for all retrenched employees for six months and employees aged 50 years and older will be given the option to buy out their medical aid up to the age of 55 in order for normal post-retirement benefits to kick in.Study loans granted to retrenched employees will be written off and the bank offered counselling to retrenched staff.Kaaronda said the move amounted to “sabotage”.”Only one person is legally employed.Is he himself suitably qualified for the job? Why is he getting the special treatment? We are convinced the man at the helm is not suitably qualified.”There must be wholesale changes if it is so,” Kaaronda said.Agribank said the decision was taken after a study done by an independent company and law firm Conradie & Damaseb found the restructuring process “legally compliant”.