THE Zimbabwe Banks and Allied Workers’ Union (Zibawu) is challenging the takeover matrix of Standard Chartered Bank by FBC Bank Holdings, saying some transfer arrangements made recently are tantamount to gross abuse of employees’ labour rights last seen in the colonial era.
BRENNA MATENDERE
In May last year, the Reserve Bank of Zimbabwe (RBZ) announced that the registrar of banking institutions approved FBC Holdings Limited’s acquisition of 100% shareholding (significant interest) in Standard Chartered Bank Zimbabwe Limited which would also result in FBC Holdings Limited taking control of Standard Chartered Bank Zimbabwe Limited as defined in terms of the Banking Act [Chapter 24:20].
The RBZ also advised the public that approval had been granted by the registrar of banks for FBC Holdings Limited to be registered as a controlling company for Standard Chartered Bank Zimbabwe Limited.
In the latest development, in a letter dated 8 May 2024, StanChart Bank chief executive officer Mubaiwa Mubayiwa wrote to workers saying their employment would be transferred to FBC Holdings whereupon they would receive a one-time ex-gratia payment of ZiG 101 838.
“Following the announcement of the sale of the Bank to FBC Holdings Limited on 8 June 2023, we would like to advise you that subject to obtaining regulatory approval, we intend to complete the sale on or around 18 May 2024…
“The ex-gratia payment will be subject to tax and any applicable statutory deduction and will be paid to you on or around 16 May 2024 being the last payroll date prior to the completion date. Details of your final entitlements will be set out in your final payslip which will be made available for you …” a copy of Mubayiwa’s letter to one worker reads.
Two days later, Zibawu secretary-general and former Zimbabwe Congress of Trade Unions (ZCTU) president Peter Mutasa hit back.
In a letter dated 10 May 2024, he wrote to Mubayiwa, saying the terms were grossly unfair and of utmost oppressive nature.
“It is our view that such colonial labour relations legacy no longer has room in a constitutional democracy at the workplace. Our laws demand that you consult the works council on such matter before implementation to allow workers to share their input. We therefore demand that you withdraw your oppressive terms of transfer and immediately engage the works council as per the provisions of the Labour Act,” wrote Mutasa.
In an interview with The NewsHawks, Mutasa confirmed the stand-off.
“We are up in arms with the bank because throughout the transaction it has been not consulting workers in term of the law. Unlike other transactions like Barclays’ sale where interests of all stakeholders were protected, this one has been a disaster for workers and pensioners.
“Now the bank is giving an arbitrary gratuity but tying it will oppressive terms that seek to curtail workers from raising past, present and even future claims .The terms can even prevent workers from raising claims at FBC and this is a violation of section 16 of the Labour Act. So we believe the bank would not do that to workers in Europe. It is taking advantage of our environment,” he said.
Mutasa said the workers will seek remedy through collective action.
“The Bank is taking advantage of the weak labour laws and shrinking civic space. We will therefore not waste much time in the courts but pursue serious collective action at both local and international levels. We will continue to call Standard Chartered Bank to order, even after the finalisation of the transaction until they correct this injustice,” he said.
“We don’t believe it is a British corporate practice or political culture. It is a matter of unethical conduct by Standard Chartered group and local management. Barclays Bank respectfully engaged its workers when it pulled out from Zimbabwe. It never used such primitive intimidation and dishonesty. Barclays negotiated a respectful gratuity and also gave Zimbabwean workers 15% employee share ownership trust. We therefore cannot allow Standard Chartered and its local partners FBC Holdings to treat African workers as sub-humans.”
FBC Holdings is part of the Zanu PF business empire and the ruling party owns a stake in the financial institution that used to be headed by newly appointed RBZ governor John Mushayavanhu.
