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Business News of Thursday, 6 September 2018

Source: citinewsroom.com

Banks’ staff losing jobs must be properly ‘compensated’ – Haruna Iddrisu

The Minority Leader, Haruna Iddrisu, has asked government to explore the possibility of decent packages for workers affected by the banking sector crisis.

According to him, the government has generally not handled the crises very well, especially the job losses that have resulted from the collapse of the banks.

Speaking to the Media, the Tamale South MP said Ghanaians need to be concerned about the growth of indigenous businesses.

“What is it that the government of Ghana can do to find new life for those institutions as possible. Don’t forget that the US did it when they had a financial crisis. Let’s see what role the state of Ghana can play ” he said.

The Industrial and Commercial Workers Union (ICU), is to meet the Receiver of the Consolidated Bank Ghana over the exit packages for workers of the five collapsed banks.

The labour union is hopeful its intervention will reduce the impact of job layoffs on the livelihoods of the affected employees.



The five collapsing banks were merged into Consolidated Bank Ghana Limited namely Royal Bank, Beige Bank, Construction Bank, Sovereign Bank, and uniBank.

Between August 2017 to August 2018, seven indigenous banks have had their licenses revoked over liquidity challenges.

Mr. Iddrisu said the local banks’ “contribution to the growth of the economy, the growth of the service sector and employment generally must be jealously and religiously protected.”



The MP said he was “particularly concerned about the loss of jobs and whether or not there is the capacity to pay severance awards.”

There are reports suggesting that the Consolidated Bank will lay off 1,700 workers out of the 3,700 staff that it assumed from the five banks.

This is also to manage the cost of operating the current 191 branches of the bank.