Labour Condemns Mass Retrenchment In The Banking Sector

Labour Condemns Mass Retrenchment In The Banking Sector

Organized labour has described as unacceptable the recent trend of
mass retrenchment of workers in the banking sector saying the
development makes work "dangerously precarious" in the sector.

A member of the National Executive Council of Nigeria Labour Congress
(NLC) and Chairman, IndustriALL Global Union Sub Saharan Africa,
Comrade Issa Aremu, commended the Honourable Minister of Labour and
Employment, Senator Dr. Chris Ngige and the National Assembly for
their respective intervention on the matter.

Comrade Aremu said banks who see workers as “dispensable items" during
temporary economic shock even when they treat same workers as slaves
during times of boom ought not to be in business and indeed should
have their licenses legitimately revoked.

“According to him, “At a time all the state and market actors in
Nigerian economy are working hard to address the crisis of
unemployment, mass sack in banks that are still posting prohibitive
profits can be likened to economic sabotage, he said.
 Comrade Aremu who stated in a press statement made available to
National Trail in Kaduna, also called on the CBN as banker of last
resort to intervene on the side of jobs retention in the financial
sector. The labour leader commended the activist “development
financing" of CBN under Governor Godwin Emefiele which according to
him has promoted job creations in critical sectors like agriculture,
energy and textile. He however observed that CBN must also look inward
within the banking sectors with a view of retaining jobs rather the
ongoing indiscriminate mass sacks in the sector. He also charged the
sector unions, namely National Union of Banks, Insurance and Financial
Institutions Employees (NUBIFIE) and the Association of Senior Staff
of Banks, Insurance and Financial Institutions (ASSBIFI) to urgently
champion mass Picketing of banks that are making work precarious
through mass sacks.

Commenting on the current monetary policy, Comrade Issa Aremu hails
the Central Bank of Nigeria (CBN) on its spirited efforts to defend
the Naira value through stringent capital control measures in the face
of dwindling external reserves caused by the collapse of oil price
adding that CBN should finance "production inputs not conspicuous
consumption items". He frowned at the incessant clamour for Naira
devaluation which according to him has already been devalued with
wholesome negative impact on imported inflation. He also called on the
CBN to look into the current monetary policy rate which puts interest
rate at double digit adding that “Nigeria cannot run a successful
productive value adding economy with the current high cost of funds
caused by high interest rates". He noted that the good job CBN is
doing through its interventionist measures in some key sectors of the
nation’s economy would be undermined if the interest rate is not
properly managed.

 Aremu however called on the CBN to target capacity utilization and
employment as much as it is "targeting inflation" in its monetary
policy. He also cautioned the CBN on the proposed flexible exchange
rate policy so as not to bring mass Naira devaluation though "another
                                        
 By Lola Seriki- Idahosa

window".