Staff of Capital, UT demand severance packages

Few weeks after the ‘takeover’ of UT and Capital banks by GCB Bank, some staff of the two banks have written to the ‘Receiver’-pwc, demanding severance packages if any so they can exit the bank, Business Finder has gathered.

This paper learnt that the staff in question believes GCB Bank will not be able to absorb even a quarter of the combined staff of the two defunct banks, hence their decision to inform pwc about their intention of leaving the bank before the expiration of their probation period in February 2018.

But what makes it difficult for majority of the staff of the two defunct banks are that they do not belong to any union, hence the imposition of any packages on them by the ‘Receiver’ if any.

Together, the two banks prior to their takeover had a total staff strength of 990 with UT Bank having the highest employees of 600 but with only 28 branches. GCB with more than 180 branches had total staff strength of about 1200.

This paper further gathers that some employees of the two defunct banks who want to be absorbed by GCB are making frantic efforts to be retained .
Government of Ghana and SSNIT are the majority shareholders of GCB Bank.

Business Finder had earlier reported that most of the employees of the two banks that will be absorbed by GCB Bank will come mainly from the operations end of the business.
Some staff members who spoke to this paper held the view that it is better to receive severance packages than not receiving anything at all if they failed to make it into GCB.

The Central Bank last month revoked the licenses of UT Bank and Capital Bank, directing GCB Bank to take over the two failed banks. The takeover which was a Purchase and Assumption transaction with GCB Bank Limited triggered the transfer of all deposits and selected assets of UT Bank Limited and Capital Bank Limited to GCB Bank Limited.

The Receiver was appointed to manage the assets of the two banks not taken over by GCB Bank and in addition distribute proceeds to creditors according to the priority of claims in accordance with the Banks and SDIs Act, 2016 (Act 930).