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First Atlantic Bank refuses to pay severance packages of locked-out staff

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First Atlantic Bank is not showing commitment in paying severance packages to 68 of its staff whose appointment were terminated on the 3rd of May this year (2019) thus, flouting Section 65 of the Ghana Labour Act.

This is contrary to the directive given by the Chief Labour Officer (CLO) for the Bank to negotiate with the affected staff.

Sources close to the Chief Labour Officer indicate that there is no termination agreement between the Bank and the affected workers as the Bank has failed to provide a Memorandum of Understanding (MoU). It rather provided an MoU that it signed with about 12 unionized staff.

The Bank has also been providing documents requested by the Chief Labour Officer regarding the redundancy exercise in bits and this is delaying the process.

In a petition to the CLO six weeks ago, the affected staff said the Bank is not being honest and fair in the negotiations.

The Labour Consultant representing the affected staff, John Esiape said the action of the Bank is “unfair” and in “bad faith”.

He therefore urged the CLO to intervene and firmly uphold the law with regards to termination of appointments.

BACKGROUND

First Atlantic Bank on 30th April, 2019 locked-out the affected workers giving them a day’s notice on the termination of their appointments instead of three months’ notice and failed to negotiate with them.

In a meeting between management of the Bank and the affected workers, the employees’ phones were ceased.

According to the aggrieved former workers, the Bank did not give them the stipulated three-months notice, did not negotiate with them and that they were not given notice of termination.

In related development, the affected workers have given the CLO up to June 25 to provide the agreement used in terminating the workers appointment on 3rd May 2019 or declare the termination null and void.

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