Union cries corruption in Agribank layoffs

THE Namibia Financial Institutions Union (Nafinu) has called on its members not to be hasty in accepting the retrenchment packages offered by Agribank, saying the exercise was fuelled by corruption and intended to protect the interests of a few individuals.

Nafinu President David Shikulo said they did not agree with Agribank’s decision to restructure and make around 30 jobs redundant. All employees except Chief Executive Officer Leonard Iipumbu will have to reapply.In an advertisement in local media this week, Agribank encouraged employees to apply for up to three positions in the new structure.”All created positions within the new structure will be advertised internally, externally or simultaneously, as the Bank deems appropriate.”Last week the bank served 30-day notices on employees to exercise their options to either take early retirement, voluntary or involuntary retrenchment if they don’t meet the requirements of the new positions.” ..(A)n employee or his/her representative will have the opportunity to negotiate the circumstances and conditions under which the proposed termination of services ought to take place after the 30-days notice window lapses,” the bank said.”The Ministries of Finance and Agriculture, Labour Commissioner and Nafinu were all informed about the process”.But Nafinu’s Shikulo said the process was “steeped in corruption and masterminded by individuals serving their own interests”.”To use cost effectiveness and efficiency to retrench staff is becoming a predominant and a poor excuse for those at the helm of parastatals and taking the final decisions, to relinquish their accountability and responsibility for building a strong nation, a strong institution and a strong and vibrant economy,” the Nafinu President said.He said retrenchments were draining the nation and promoting poverty.”Nafinu views this action taken by the Agribank in a very serious light and will ensure that all the necessary steps will be taken to protect the interests and rights of all its members,” Shikulo said.Agribank said 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 will be contributed to 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.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”.According to the bank, the restructuring will help them “salvage the situation”.All employees except Chief Executive Officer Leonard Iipumbu will have to reapply.In an advertisement in local media this week, Agribank encouraged employees to apply for up to three positions in the new structure.”All created positions within the new structure will be advertised internally, externally or simultaneously, as the Bank deems appropriate.”Last week the bank served 30-day notices on employees to exercise their options to either take early retirement, voluntary or involuntary retrenchment if they don’t meet the requirements of the new positions.” ..(A)n employee or his/her representative will have the opportunity to negotiate the circumstances and conditions under which the proposed termination of services ought to take place after the 30-days notice window lapses,” the bank said.”The Ministries of Finance and Agriculture, Labour Commissioner and Nafinu were all informed about the process”.But Nafinu’s Shikulo said the process was “steeped in corruption and masterminded by individuals serving their own interests”.”To use cost effectiveness and efficiency to retrench staff is becoming a predominant and a poor excuse for those at the helm of parastatals and taking the final decisions, to relinquish their accountability and responsibility for building a strong nation, a strong institution and a strong and vibrant economy,” the Nafinu President said. He said retrenchments were draining the nation and promoting poverty.”Nafinu views this action taken by the Agribank in a very serious light and will ensure that all the necessary steps will be taken to protect the interests and rights of all its members,” Shikulo said.Agribank said 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 will be contributed to 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.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”.According to the bank, the restructuring will help them “salvage the situation”.