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. . .Zibawu considers appeal
Livingstone Marufu
BANKS have flushed out 53 employees since the landmark Supreme Court ruling on July 17, 2015 that allows employers to terminate employment contracts on notice, but the bank workers’ representative body Zibawu (Zimbabwe Bankers Workers Union) has vowed to use every option available to ensure that the workers are reinstated.
While the figure is disturbing, it is, however, less than the numbers that are being suggested by market rumours, suggesting that the job losses might be overstated.
By last week, Steward Bank, a subsidiary of Econet Wireless Zimbabwe, had shown the door to 28 workers, while Metbank had shed 23 jobs, according to Zibawu.
Also, Stanbic Bank, a subsidiary of Standard Bank South Africa, had already dismissed two employees based on a Labour Court decision on the same matter.
The decision was made before the Supreme Court judgment.
Market watchers believe that job losses have not been pronounced in the banking sector as in other sectors of the economy as most financial institutions managed to realign their costs way before the new developments in the job market.
Recent statistics from Zibawu show that more than 500 bank employees — representing approximately 10 percent of the sector’s non-managerial staff — have been retrenched.
The banking sector has 18 operating institutions that employ more than 6 000 people, 5 000 of whom are not in managerial positions.
In an interview with The Sunday Mail Business last week, Zibawu secretary general Mr Peter Gift Mutasa said the union was going to approach each case differently to make sure that the terminations are rescinded.
Part of the options that are being explored include approaching the Labour Court, the Constitutional Court and Government through the Ministry of Public Service, Labour and Social Welfare.
“We are taking these different routes and approaching different forums because each case has peculiar circumstances and raises different legal issues. Our view is that the judgment does not invalidate the various provisions of the Labour Act and the Constitution and any employers who stupidly misinterpret its import will regret.
“The case for Steward Bank employees, we are filing an application to the Constitutional Court and our argument is that terminations were a breach of the employees’ Constitutional rights guaranteed in terms of Section 56 and 65 of the Constitution of Zimbabwe.
“In the case for Metbank we will be referring the matter to a Labour Officer in terms of Section 93 of the Labour Act, as the dismissals under the particular circumstances of the case are not only unfair, but unlawful as the employer ought to have followed the provisions of Section 12C, these dismissals are clear retrenchments.
“The case of Stanbic Bank, we are filing an Application for a Show Cause Order to the Minister of Public Service, Labour and Social Welfare and this is in terms of Sections 102, 105 and 106 of the Labour Act. These terminations amount to unlawful lockouts,” he said.
The banking sector has remained generally profitable and last week Reserve Bank of Zimbabwe Governor Dr John Mangudya indicated that aggregate net profit for the sector rose to US$43 million as at June 30, 2015 from US$26,5 million a year ago.
Fourteen out of the 18 banks were profitable.
In addition, the aggregate core capital base increased to US$899,1million in the same period from US$753,3 million in 2014.
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