Agribank faces court action Union takes legal route over redundancy issue

AGRIBANK is facing court action after the Namibia Financial Institutions Union (Nafinu) yesterday decided to take the legal route because of the bank’s refusal to withdraw a decision to make all but one job redundant.

Nafinu’s General Secretary Asnath Zamuee told The Namibian that the bank refused to meet the ultimatum set by the union – that of withdrawing the memorandum on its restructuring process by 14h00. “Their lawyers, Conradie and Damaseb, wrote back saying they advised Agribank not to withdraw the memo.We will now take the legal route,” Zamuee said.Earlier in the day, Nafinu’s President David Shikulo alleged that Agribank Chief Executive Officer Leonard Iipumbu was forcing some employees to sign retrenchment letters.The agricultural bank’s decision to restructure will make around 30 jobs redundant, while all employees except Iipumbu must reapply for their positions.The bank urged staff to apply for up to three positions in the new structure.However, the Secretary General of the National Union of Namibian Workers (NUNW), Evilastus Kaaronda, said 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 said 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.”It is a problem that is assuming national [proportions].Our people are suffering as a consequence of these decisions.Something is wrong when one person feels he is untouchable,” Kaaronda said.Both Kaaronda and 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 the booted staff.Kaaronda said the action by Agribank 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”.”Their lawyers, Conradie and Damaseb, wrote back saying they advised Agribank not to withdraw the memo.We will now take the legal route,” Zamuee said.Earlier in the day, Nafinu’s President David Shikulo alleged that Agribank Chief Executive Officer Leonard Iipumbu was forcing some employees to sign retrenchment letters.The agricultural bank’s decision to restructure will make around 30 jobs redundant, while all employees except Iipumbu must reapply for their positions.The bank urged staff to apply for up to three positions in the new structure. However, the Secretary General of the National Union of Namibian Workers (NUNW), Evilastus Kaaronda, said 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 said 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.”It is a problem that is assuming national [proportions].Our people are suffering as a consequence of these decisions.Something is wrong when one person feels he is untouchable,” Kaaronda said.Both Kaaronda and 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 the booted staff.Kaaronda said the action by Agribank 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”.