Banking reform: More workers to lose jobs

As the Deposit Money Banks in the country continue to embrace cost-cutting measures, indications have emerged that another round of mass sacking is imminent in the banking industry.

Our correspondent gathered from reliable sources in the banking sector that more bankers would lose their jobs because some of the DMBs are preparing to reduce their running costs.

A top official in one of the acquired banks told our correspondent that the action was inevitable.

“There’s no way some people will not lose their jobs. For instance, after the acquisition, some banks had two branches very close to each other. What do you expect in such a case?” he asked.

It was also gathered, however, that the problem was not restricted to the acquired banks only, as some “healthy” ones had also adopted the measure to trim operating costs drastically.

Another top official, who pleaded anonymity because he was not permitted to speak officially, said, “Banks are now adopting a new business model to reduce their workforce in order to cut down on their operating costs.

“The emergence of the electronic payment system has made it possible to work with fewer employees.”

Access Bank Plc, which acquired Intercontinental Bank Plc, recently terminated the employment of over 1, 500 employees of Intercontinental Bank.

It was gathered that the basis for the mass sacking was the new appraisal system (Operation Just Cause), which Access Bank introduced in Intercontinental Bank on November 8, 2011.

In the same vein, Ecobank Transnational Incorporation, which acquired Oceanic Bank International Plc, disengaged an undisclosed number of workers on Wednesday.

Enterprise Bank Limited, formerly Spring Bank Plc, one of the nationalised banks, on Tuesday said it had given 140 of its employees, whose performance fell below satisfactory level, an option to resign.

The bank had earlier introduced the implementation of a performance-based compensation system, which entailed the inclusion of a variable pay among members of staff.

When contacted, the National President, National Union of Banks, Insurance and other Financial Institutions Employees, Mr. Peter Okafor, told our correspondent that the union was on top of the situation.

Okafor said, “We have been talking to the managements of the banks.

Although the banks have the power to hire and fire, we will not fold our arms. Something needs to be done. We are also ensuring that due process is followed when carrying out this action. If due process is not followed, we will be forced to picket the banks.

“When you are telling people to go, you have to pay them what we call severance package. In the case of Intercontinental Bank, we are talking to them on behalf of our members. We sat down with the management of Ecobank too. So, we are on top of it.”

He said the sacking in the banks was a serious challenge to the banking sector and the economy at large.

Okafor blamed the Federal Government for the unemployment problems in the country, saying, “It is the responsibility of the government to provide jobs. All government initiatives have not provided jobs for the people.”

http://www.punchng.com/business/business-economy/banking-reform-more-workers-to-lose-jobs/

make people look beyond bank jobs na

na by force to work for bank

its sad tho. . . i hope their compensation would be enough for them to start somethn afresh

The chicks are coming home to roost. Some silly guy opened a thread where he was pompously telling all who cared to listen (and read his posts) why bankers live an affluent lifstyle and how rich bank staff were and all that crappy stuff. I recall replying that Banks are the most volatile institutions to work with, today, it is becoming a huge reality that they can no longer sustain their over bloated style. A lot more will be fired in days to come, i am not wishing them bad, it is just reality. I was in that industry years back and i knew what the future held and i had made 3 different moves since then. I feel sorry for the bread winners who will be put under pressure to continue providing for their own. God will see all through. However, it is an eye opener to those who feel they are all too-important in their places of employment that there is a need to have a plan B in place for a rainy day such as this. It is well with them.

cos we av a bad manager @ d helms of affairs

Another sterling legacy of our islamic-studies-graduate-bowtie-wearing CBN extremist governor

Nigeria is just waking up to the world of lean banking.

DJTee:

Another sterling legacy of our islamic-studies-graduate-bowtie-wearing CBN extremist governor

Shut up your filthy mouth. . .

Ewu Gambia. . . .

Sanusi is doing more havoc than good in this sector, I just hope it won't be too late when GEJ realises this.

Its well with them.

In a country where there is no job security what do u expect. Employers always think that they are doing employees favour by providing  jobs and as such appointment can be terminated at any time.

Wherever u are currently working, pls be wise.

Okija_juju:


Shut up your filthy mouth. . .

Ewu Gambia. . . .

U obviously cannot tell the wood from the trees . . .and I weep for your children!!!

My guy im not prepared to turn this thread into a slanging match but kindly "boot" your filthy brain before spewing a load of twaddle like u have done.

in the same vein i just heard the sacked oceanic guys has blocked their head office, oceanic branches are not attending to customers,

na wah oh

That means more okada on the road. SLS keep up the good job. .

Boko Haram visited banks last few years and people clapped when BH said your bank MD's were thieves.Erastus and IBRU lost their private investments in the same banks.Nigerians jubilated calling them fraudsters and turn around to give gave SLS awards even when we started experiencing credit crunch.Now our eyes opened.Expect more bombings in the banks from Bro Bokos

saxywale:

Nigeria is just waking up to the world of lean banking.

I do not agree with this. The major challenge with the Nigerian Banking system is that of the economic and banking system in itself. The bank and the nation as a whole over time has failed to support real sector growth and that is why we are having this problem. I used to think there were too many bank branches until now where even in my community of less than 120,000 people I cannot count the number of bank branches and yet despite we having the option of paying and withdrawing thru the ATM these branches exist.

Banker are now endangered species

In fact we make too much noise over the sacking of these staffs. It is only in Nigeria you see the kind of the numbers of staffs in banks. Some times, I wonder what their jobs are. You have a computer network and you find 10 staffs doing same jobs. The ladies put on provocative dresses walking around without doing anything. I went to one of the banks and I saw a lady always sanding in the banking hall of the bank whenever I go to the bank for any transaction. I called one of the tellers and I asked her what the ladies job is, I was told she is a customer relation officer. I now inquired what her duties are since she is always standing in the banking hall and I observed this for over one year. I was told that she only directs customers that walked into the banking hall. I asked the teller  the duty of the customer service officers since I saw about 3 of them sitting and attending to customers. The teller told me that, in fact, that they just wanted her there just doing nothing.

In the United States, you see very minute number of staff in a bank. But here in Nigeria, you see people who carry themselves as if they are lord. Leave the live of barons who deal on drugs. Manipulate accounts of people customers and say that they are wonder bankers.

its amazing how the sack of 8 people (Bank MDs) led to the sack of over 20,000 Nigerians from the banking industry. this is pure leadership test. food for thought

Can Smbody pls fire SANUSI b4 all bankers turn Aboki Cattle Rearers.

i recall that virtually anyone could work in a bank, now i'm sure the only ones that will remain are going to be the really smart, IT-savvy and internationally-current ACCOUNTANTS, heck, cleaners and watchdogs will even retain their own jobs! so sorry, but this reform is totally way-to-go. i 'Like'!!!

All i can say is good luck and better fortunes to those that are affected and to those that will be affected. I can't wait for the day that we will stop hearing that so so bank has sacked so so number of staffs.

Reform?

Use a blackberry? Add me on BBM. Pin:26BE3874!! English speaking peeps only tho!

slimdamatrix:

Use a blackberry? Add me on BBM. Pin:26BE3874!! English speaking peeps only tho!

why?

u have jobs for the sacked peeps?

The only way to beat this reform for any employee of the bank is to go IT wizard, they will not have any choice than to retail you.

Round and round we go, a failed economy will always result into job cut and other structural adjustment. A country where businesses depend solely on generator to function, do you know how much banks spend on fueling and maintenance those generation plant monthly? Businesses in developed nations are cutting jobs even with all social amenities in place. What do you expect in Nigeria case? It is so unfortunate

andyanders:

In fact we make too much noise over the sacking of these staffs. It is only in Nigeria you see the kind of the numbers of staffs in banks. Some times, I wonder what their jobs are. You have a computer network and you find 10 staffs doing same jobs. The ladies put on provocative dresses walking around without doing anything. I went to one of the banks and I saw a lady always sanding in the banking hall of the bank whenever I go to the bank for any transaction. I called one of the tellers and I asked her what the ladies job is, I was told she is a customer relation officer. I now inquired what her duties are since she is always standing in the banking hall and I observed this for over one year. I was told that she only directs customers that walked into the banking hall. I asked the teller the duty of the customer service officers since I saw about 3 of them sitting and attending to customers. The teller told me that, in fact, that they just wanted her there just doing nothing.

In the United States, you see very minute number of staff in a bank. But here in Nigeria, you see people who carry themselves as if they are lord. Leave the live of barons who deal on drugs. Manipulate accounts of people customers and say that they are wonder bankers.

I beg to disagree with the bolded. I have visited some branches of Wells Fargo and they have at least 10staff per day despite the technology and they have branches almost every where here in my community and some few community where I have visited in my state despite the advanced technology. The problem I see with the Nigerian bank is that of an economy and a banking system that cannot sustain growth of the real sector thus, there is nothing to sustain deposit and interest in times like this.

So sad. And the unemployment queue is so long already. SLS said his reforms would not lead to workers disengagement. See how true that is turning out to be

andyanders:

In fact we make too much noise over the sacking of these staffs. It is only in Nigeria you see the kind of the numbers of staffs in banks. Some times, I wonder what their jobs are. You have a computer network and you find 10 staffs doing same jobs. The ladies put on provocative dresses walking around without doing anything. I went to one of the banks and I saw a lady always sanding in the banking hall of the bank whenever I go to the bank for any transaction. I called one of the tellers and I asked her what the ladies job is, I was told she is a customer relation officer. I now inquired what her duties are since she is always standing in the banking hall and I observed this for over one year. I was told that she only directs customers that walked into the banking hall. I asked the teller  the duty of the customer service officers since I saw about 3 of them sitting and attending to customers. The teller told me that, in fact, that they just wanted her there just doing nothing.

In the United States, you see very minute number of staff in a bank. But here in Nigeria, you see people who carry themselves as if they are lord. Leave the live of barons who deal on drugs. Manipulate accounts of people customers and say that they are wonder bankers.

Is your conclusion based on observation of just one lady in just one branch ? Some branches have high customer traffic and some others are just the opposite. Go to bank branches like Trinity or Oke-Arin in Lagos and you will hear customers begging for more people to be employed to serve them.

These banks have a lot of work to be done and they know it, as soon as they sack people and the quality of service drops, they will be back on the employment table looking for new intakes that they'll probably pay a lot less than the guys they let go.

Loskee:

i recall that virtually anyone could work in a bank, now i'm sure the only ones that will remain are going to be the really smart, IT-savvy and internationally-current ACCOUNTANTS, heck, cleaners and watchdogs will even retain their own jobs! so sorry, but this reform is totally way-to-go. i 'Like'!!!

You are making the greatest fallacy I know. How there you conclude so silly as this? While I was a banker and they downsized (Feb. 23, 2010) in my bank, the measures were not realistic enough and it was simply a case of "eni ori yo o di le". I have a friend who was affected yesterday in Oceanic, we used to be together in Ecobank before he left for Oceanic and he was very hard working. He's got himself 2 promotions in Oceanic after he left and he is also a Chartered Accountant, yet he was asked to go. Although, I do not know the reason but I do not think it is performance based. Another example was one they did in my last bank in March 2011, it was just random selection thus, even if there is need for a reform as you said, those retained should be the efficient ones but when there are no yard stick, how do we achieve this

chyseth:

its amazing how the sack of 8 people (Bank MDs) led to the sack of over 20,000 Nigerians from the banking industry. this is pure leadership test. food for thought

Sincerely yet, most people see it as the best that could happen. I am convinced, if he hadn't taken his funny preventive measures, the system wouldn't have been these worst.

gempo:

All i can say is good luck and better fortunes to those that are affected and to those that will be affected. I can't wait for the day that we will stop hearing that so so bank has sacked so so number of staffs.

I truly wish them the best as well. Some would surely come out better and some may turn out worse.