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Absa Bank Zambia Employees Entitled To Redundancy Packages

Lawyers have indicated that Absa Bank Zambia employees are entitled to redundancy packages contrary to arguments forwarded by Absa Bank Zambia Management.

This comes in the wake of Absa Bank Zambia refuting our article we published saying Absa Bank Zambia employees do not deserve any redundancy packages as the transition from Barclays Bank Zambia to Absa Bank was merely a name change.

“The transition from Barclays Bank Zambia PLC to Absa Bank Zambia PLC is treated by law as a name change because the bank remains a going concern.This means that the Bank will continue to operate as normal for the foreseeable future. This also entails that all obligations including benefits accrued by employees for the years served under Barclays, have transferred to Absa who will honour those payments as and when they are due,” said Mato Shimabale, the Bank’s Head for Marketing and Corporate Relations.

In a lengthy Legal opinion, the Lawyers say as the matter is now, Barclays Bank Zambia was extinguished by Absa Bank Zambia hence it is the requirement by Law for Unionized Workers to be paid redundancy packages. They say failure to abide by these guidelines enshrined the Country’s Employment Act may lead to hefty damages.

It has been established that with the transition of Barclays Bank Zambia to Absa Bank Zambia, the Collective Agreement under Barclays Bank Zambia ceased to exist which therefore means Absa Bank Zambia needs to sign new Collective Agreement with the Unionized workers.

Lawyers further adds that Unionized Workers have a right to declare a dispute with Management over the current status. They also say failure to obtain a consent with Absa Bank Zambia is an illegality.

If the situation does not change, Absa Bank Zambia employees are resolved to down tools because they feel let down by Absa Bank Zambia Management.

Copyright © 2020 ZR.

 

30 Comments

  1. nineo

    You mentioned the Barclays Marketing and Corporate affairs head but failed to mention who thesee lawyers you are referring to are? Any reason, or is it that they just want business. Ask them to offer probono services and lets see if they will continue inciting the workers!!!!

    • Andrew Silwamba

      @ nineo, why play the ‘devil’s advocate’ over something you’re clearly so ignorant about? According to your small brain a LEGAL opinion is tantamount to inciting anybody??

  2. Boss

    Comment It’s a brand new look therefore terms charge if there’re to charge’nt for it’s royalty servicesmates?

  3. Razor

    If the workers demand redundancy packages then it means they are no longer employees and that will give ABSA every right to decide who to hire and who is no longer wanted by the bank. There are no jobs in the country, dont listen to the lawyers who just want to make money out of you employees, just continue with your jobs and continue working.

    • Lulu

      I don’t think there is a problem with that…Let them do the right thing…coz in other countries employee were paid why should it be different with zambia?

  4. James Muna

    @Boss, stay off weed.

  5. Justice Mukuka

    These Barclays/ ABSA management, who do they think they can fool? The law? Who in their right mind would believe the nonsense that Barclays bank Zambia just “changed its name” to Amalgamated Banks of South Africa (ABSA). Childish argument!

  6. James Silwamba

    (1) If ABSA handlers or management think they can avoid meeting their obligations under the new Labour Laws, then they are clearly living in ‘fools paradise’! Because the law is very clear – no ambiguities on this one. Former Barclays employees MUST be paid according to the law.

  7. Che Guevara

    SELFISH, greedy senior leadership of the bank who want to practice “Kudyela Masuku Pamutu Syndrome’ (KMPS). Shame on them!!

  8. Ferdinand Mpundu

    But where is the so-called Minister of Labour, Joyce Nonde?compromised already??

  9. Rex 1

    That head of Marketing and Corporate affairs appears to be so dull.

  10. Lucy

    The former Barclays workers must take it upon themselves and fight. They should not count on anybody else. This is Zambia. People here seem to only care about their stomach, and that of their children. Immoral! Sad.

  11. Public Protector

    Unfortunately for that Mato Shimabale and his other bunch of ‘kandiles’ in the new Labour Laws the thing of going concern does not apply. The system was in the past manipulated by crooked companies to abuse workers. To dodge financial obligations to their former staff.

  12. Raymond

    The new Labour Laws will catch up with many unscrupulous companies. Barclays may be the first one to be fished out!

  13. Chileshe

    Barclays, now ABSA Zambia has really been caught pants down on this one. Where is the integrity? Insoni ebuntu.

  14. Benjamin Sitali

    I guess the learned counsels (Lawyers) have in this case sought not to be mentioned – at this stage. Obviously it is premature to do so, until former Barclays employees have formerly filed a lawsuit against ABSA management. It is the right thing to do. These likely are lawyers of integrity – who do not want cheap publicity. But genuinely wants to fight for the rights of their clients.

  15. Candy

    The day ABSA workers take to the street, is the day ABSA management and their Mizinga Melu will sit up! Unfortunately, that’s how it works in Africa.

  16. Judge Randal

    Why does this government act so slowly on apparent illegalities? Why not take decisive action – enforce the law? It is said that”Justice delayed, is justice denied”.

  17. Alexander Simpungwe

    Is it not illegal to employee someone without entering into a contract, or with an invalid contract?? Legally speaking, as it stands ABSA workers are working either without or with invalid contracts

  18. Hammer

    This sounds like a déjà vue. Was it in the mines?? I think get your dues from your former employer ( Barclays) and sign a new contract with your new employer ( ABSA)

  19. Joseph zulu

    The law is clear if they failed Union is there if any thing go to court for interpretation of the law in Africa we are not fair to our fellow friends straight thing’s we want to dispute why?

  20. Mubita Squared

    People, the Law is VERY CLEAR on this! What is supposed to happen is that the ABSA management MUST allow their unionised staff to either sign new contracts or accept to be declared redundant – and be paid the redundancy packages. In other words, the former Barclays workers MUST be allowed to FREELY choose whether to stay with the new organisation (ABSA) or be paid their packages, period!

  21. Mubita Squared

    From what I hear this has not been the case. In fact circumstances surrounding the whole Barclays/ ABSA transactions have not been clearly communicated to ‘former Barclays employees’ contrary to provisions and requirements of the current Labour Laws. #abuseofworkers

  22. Banda ( victim of same company name change)

    Barclays employees, i warn you to be aware of this trickery by company owners.
    In 1994 Zambia Privatisation Agency (ZPA) treated us at Kabwe’s General Pharmaceuticals in the same manner- of the going concern trickery. They sold aĺl the 100% shares of General Pharmaceuticals Ltd- a huge hospital IVF fluids factory+ 41 staff houses to a newly formed company- Mutashi Ltd of Lsk, whose ownership was the then Minister of Finance’ young brother. We workers were treated exactly the same way Barclays wants to treat their workers- no redundancy payments, so that Mutashi Ltd could pick those they wanted to continue with- as completely new employees. We were even verbally promised hefty salary increases under Mutashi Ltd. However, this didn’t happen, as Mutashi Ltd quickly started asset stripping by selling all the 41 staff houses back to GRZ (Zambia Army)-forcibly evicting all of us- and the money from this sale dissappeared. Sales proceeds from factory sales started going into the new owners’ pockets. This quickly led to lack of funds to procure production inputs and all of us were soon sent on forced leave on half pay for three months, after which liquidation shortly followed- all 20 years benefits lost. Before liquidation we sued Mutashi Ltd and the Attorney General in the Lusaka High Court for our benefits- a case which lasted more than 20 years, and all the Mutashi Ltd shareholders died. The High Court finally ruled that, despite the cruel manner we the workers had been treated by loosing our 20 years benefits, the Atorney General was not liable to pay because ZPA had washed its hands off General Pharmaceuticals Ltd when Mutashi Ltd asset stripped- despite our having bitterly protested to ZPA at the time of sale for them to pay us our 20 years benefits at the time of sale.Our appeal to the Supreme Court also failed. We the workers are destitute up to today and about 50% of our colleagues have since died from depression related ailments and plain starvation.
    So you Barclays workers, take heed and push for your Barclays dues. The devil you know……. Our judiciary cannot be depended upon as there are great inefficiencies there- imagine a workers’ case lasting 20 years plus. The Labour ministry officials must work hand in glove with your Union leaders on this matter. ABSA conditions will surely be put in place, according to the RSA labour laws- but are these laws better than the former Barclays’? Good luck!!

  23. General Aka

    Mizinga Melu is so comfortable, apparently because she’s ‘politically connected’, but she should not push her luck too far. At the end of the days the law is the law. Everybody is subject to the law of the land.

  24. Uncle Ray

    So the so-called “ABSA bank Zambia” STILL has workers whose contracts where signed between them (workers) and Barclays Bank? What kind of nonsense is that? Total confusion!!!!!!!!!

  25. Carol

    It depends on what the Labour laws in Zambia state. In Zimbabwe all the employees were given generous redundancy packages with the changeover from Barclays to First Capital with tellers getting at least US$20, 000 to 30,000. Then they were rehired as permanent workers and the ones affected by the rationalization let go completely. The workers union isn’t doing its job at all cause this is what should have been negotiated pre – takeover

  26. Paulus

    Closely following

  27. Lulu

    I am wondering why this is a problem in zambia
    ..when in other countries employee’s were paid…

Comments are closed.