BY Victor Ahuma-young

There  are indications that a new policy which has a grave consequence for job security is being introduced into the banking industry by management of some banks in Nigeria.

Sanusi Lamido Sanusi, CBN's governor

The policy, Labour Vanguard gathered, emerged from a recent directives by some Banks that employees provide “Financial Guarantors”.

The new policy, which organised labour perceives, as a new wave of unfair labour practices in the banking sector, is believed to be targeted at easing out workers from the system. Already, labour has called for its stoppage to avoid industrial unrest in the volatile sector.

According to Labour Vanguard investigation, the policy stipulates that such a financial guarantor must have twice the yearly income of the employee being guaranteed.

Labour kicks

Reacting to this development, the Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, called well meaning Nigerians and the labour regulatory agencies to intervene and implore the managements of banks involved in such anti-labour policy to jettison it as it “may provoke crisis and industrial disruptions that would not only affect our national economy but the entire fabric of our social and political system.”

According to the President of ASSBIFI, Comrade Sunday Salako, “The implication is that if an employee’s yearly income is N8 Million, the Financial Guarantor must be a person with a yearly income of N16 Million. The policy also requires that such a Guarantor must provide a notarized statement of account with a specimen signature, which the current employer bank must verify. In the alternative, such a Guarantor must also provide a certified evidence of owning landed property in choice areas, which must also be verified by the employer bank. This policy is currently generating a lot of disquiet and apprehension within the industry, causing many of our members to raise doubt on the real intents of the policy. It is therefore apposite that we correctly contextualize the implications of this policy. “

“You would recall that following the Bank sanitisation of 2009, most Banks claimed that bloated staff strength was responsible for their high overhead cost. Thus, thousands of Bank workers were laid off as scapegoats for what indeed was the recklessness and indulgences of Members of Boards and Managements of the Banks. The Executive Directors of all rescued Banks were indicted of running the finances of their organisations aground by granting risky margin loans, financial capital speculations and sundry frauds. We want to put clearly on record that financial system, globally, is run on trust-entrenched institutions. The Banking system in the country and most Managements already have in place, an insurance policy called “ Fidelity Guarantee” which covers any fraudulent practices by any erring employees.

“To our chagrin however, Banks and Insurance firms are veering off this known and tested mode of risk protection to request individual employees to provide Financial Guarantors. It is a trite knowledge that the risky lending which are affecting the fortunes of the Banks were never granted by these employees but by the same Boards and Management teams to their cronies and Associates yet Trillions of public funds were used to bail these same Board and Management out. We ask who is going to serve as the Financial Guarantors for members of Boards and Management s of these Banks.”

The President of ASSBIFI, added, “We unequivocally condemn this directive as socially unjust, naturally repugnant and highly immoral capable of creating a bedlam scenario in the Banking industry. In a country with close to 35 Million unemployed and high level of poverty, this policy would further restrict the layers of people who could have access to employment in the Banks. This is at variance with the Federal Government policy on human capital development and job creation. More-importantly, it is manifestly clear that this policy would be an open invitation for high scaled crimes as any employee who dares contemplate crime would also think of recouping the losses that the Financial Guarantor may incur. We call for immediate halt of this obnoxious, inhuman and anti-labour policy. If there is need for anyone in the workforce of our Banks to provide Financial Guarantors, it should be the Board Members and Executive Directors who have the tendency to grant reckless loans and defraud their organisations.”

CBN keeps mute

However, efforts to get the Central Bank of Nigeria, CBN, to response to the contentious issue proved abortive.

Numerous calls put through to the Apex Bank’s Corporate Affairs Manager, Mr. Mohammed Abdullahi, were unanswered. When he eventually answered, he requested that the issue be sent through text message. This was done on Friday, June 3, 2011 and up till the time of this report, he did not send response.