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Business News of Monday, 21 August 2017


UT, Capital staff to suffer pay cut

Workers of the defunct UT and Capital banks will be migrated onto GCB Bank service conditions from next month.

This was communicated to staff of the acquired banks at an engagement over the weekend.

The move will result in some workers getting pay cuts while others could benefit greatly.

GCB, at the engagement, however, assured workers of the two defunct banks that it is going to maintain their current salary levels just for this month. However, going forward, everybody will be paid according to what officials at GCB bank are currently enjoying.

It is not clear how many workers from the two defunct banks will lose their jobs, but job cuts are expected to happen when they complete the initial integration process from the first quarter of next year.

Meanwhile, the Minority in Parliament has raised the issue of payment of entitlements to staff who may not be employed, explaining that it was normal practice for firms who purchase other entities to assume responsibility and pay entitlements of redundant workers hence the regulating body and stakeholders must ensure that the workers are duly compensated.

GCB Bank Limited on Monday, 14 August 2017, took over transfers of all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd after a purchase agreement as the two banks were struggling to operate financially.