Agribank pushes on with layoffs

AGRIBANK has invited the Namibia Financial Institutions Union (Nafinu) to form a negotiating committee to represent its members after the 30 days’ notice of retrenchment given to employees lapsed.

Hans Gunther Stier, chairperson of the bank’s board of directors, said Agribank would respect the decision by those employees who refused to be part of the process. Agribank recently announced a restructuring process which affects all but one job at the bank – that of the Chief Executive Officer.Around 30 jobs will be made redundant.The board and the bank management have been heavily criticised by Nafinu and the National Union of Namibian Workers for the way the process was handled.The unions claimed it was not transparent and threatened to go to court to nullify the process.They also claimed that the CEO, Leonard Iipumbu, was not suitably qualified for the job and was a political appointee.But board chairman Stier said in a statement that the restructuring was transparent, fair and within the limits of the Labour Act.He said Iipumbu’s appointment went through the correct channels.”The Board of Directors wishes to emphasise that Agribank does not need approval from the union to manage its affairs.It is the prerogative of Agribank to restructure in line with the changing business environment in order to remain competitive and profitable,” Stier said.He said statements by the two unions were misleading and derogatory, as they questioned the process although Nafinu shop stewards had been involved from the outset.Agribank recently announced a restructuring process which affects all but one job at the bank – that of the Chief Executive Officer.Around 30 jobs will be made redundant.The board and the bank management have been heavily criticised by Nafinu and the National Union of Namibian Workers for the way the process was handled.The unions claimed it was not transparent and threatened to go to court to nullify the process.They also claimed that the CEO, Leonard Iipumbu, was not suitably qualified for the job and was a political appointee.But board chairman Stier said in a statement that the restructuring was transparent, fair and within the limits of the Labour Act.He said Iipumbu’s appointment went through the correct channels.”The Board of Directors wishes to emphasise that Agribank does not need approval from the union to manage its affairs.It is the prerogative of Agribank to restructure in line with the changing business environment in order to remain competitive and profitable,” Stier said.He said statements by the two unions were misleading and derogatory, as they questioned the process although Nafinu shop stewards had been involved from the outset.