Retrenchment: We why didn’t renew contracts of affected staff – Ecobank
…says over N500m paid as severance packages and other palliative measures
The management of Ecobank on Wednesday explained why it did not renew contracts of its Vendor Managed Personnel.
Recall that TNG exclusively reported on Tuesday that over 1,500 staff were affected by the bank’s recent retrenchment exercise. However, the bank in a statement on Wednesday said it did not disengage its staff but decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to these agencies who are their employers.
Investigations by TNG revealed that Ecobank has working relationships with three outsourcing firms; ICS, VLA and L&B. Findings also showed that the bank is gradually winding down partnerships with the outsourcing firms with its recent launch of its academy to train fresh graduates for subsequent direct employment into the system. Hence, the massive termination of appointments of staff earlier recruited by the outsourcing firms.
According to the bank, 332 graduates are currently undergoing intensive training at Ecobank Academy in preparation for full employment into Ecobank Nigeria. The programme combines the three categories of Entry Level, Graduate and Management Trainees with a program duration of 2months, 12months and 21months respectively.
It however said the affected staff have been duly paid their severance package to the tune of over a billion naira through their respective recruitment agencies. The bank also said qualified affected staff can reapply for direct employment to the bank.
Read the bank’s full statement below:
Cessation of Contract Engagement of Vendor Managed Personnel
- Ecobank Nigeria did not disengage its staff. The bank decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to these agencies who are their employers.
- As a demonstration of the Bank’s concern and compassion for the affected personnel of our contractors, palliative measures were put in place by the Bank to cushion the effect on them: These include payment of contract cessation packages of over half a billion Naira already paid through their employers as well as opportunity given to those with requisite qualification to apply to the Bank for permanent employment.
- In addition, the Bank has offered them the opportunity to become Xpress point agents of Ecobank as a way of further providing them entrepreneurial and financial empowerment.
- May we state that Ecobank is not obligated to renew its contract with the service providers involved.
- As part of the Bank’s business strategy, the bank is investing in the employment of full time graduates and as such over 300 graduates are currently undergoing training at the Bank’s state of the art Academy which was recently accredited by the Chartered Institute of Bankers of Nigeria. They are to be absorbed into the system at the end their training as permanent staff.
- The Bank would continue to align its people composition, development, recognition and rewards to position us as best practice service model in the industry, delivering superior customer service and experience across our network