TINASHE MAKICHI
Daggers have been drawn between First Capital Bank Zimbabwe and its employee representative body, Zimbabwe Banks and Allied Workers Union (Zibawu) over unfulfilled promises amid claims the financial institution has lost its blue chip status, Business Times has established.
The two conflicting parties have been in running battles with the employee representative body accusing the new shareholders of neglecting its employees’ welfare.
Barclays Bank Plc disposed of its 67.68% shareholding in Barclays Zimbabwe to First Merchant Bank and since inception there were promises of job preservation but to date the new shareholders have since retrenched close to 250 employees.
Business Times is informed that the internal workers council is also accusing the new shareholders of failing to fulfill the promises made during the takeover of the bank.
There are indications that some members of the bank’s workers council were active and heavily consulted during the takeover of the bank without the knowledge of the executive at that time.
On several occasions Zibawu has picketed at the bank’s premises expressing concerns on the affairs of the bank and the alleged deteriorating working environment for the employees.
Zibawu secretary general Peter Mutasa told Business Times that the representative body was worried about the manner in which the bank was being run which to date has left most employees impoverished.
“This is a sad state of affairs at First Capital Bank and it is unfortunate that the bank used to be a blue chip financial institution. The bank’s employees are wallowing in abject poverty and we had to resort to picketing to make sure that employee concerns are heard,” Mutasa said.
“Since inception, the new shareholders promised they will not retrench but they went on to retrench against their promise. We also think there is some racial issue as well but we are still investigating the matter.”
First Capital Zimbabwe head of marketing and communications Emily Nemapare said a “culture of open dialogue is fostered through numerous engagement initiatives with internal staff representative bodies, where collective efforts and output continue to be realised steadily”.
“First Capital Bank Zimbabwe can confirm that over the period mentioned, the bank has significantly invested in a systems upgrade which inevitably resulted in a restructuring exercise to increase efficiencies. This was in response to local and global trends impacting the banking industry,” Nemapare told Business Times.
“The bank remains committed to promoting employee welfare, creating a safe, inclusive and supportive workplace for all its employees and effectively serving our customers.”
The Covid-19 pandemic has forced a number of banks to retrench after closing branches with most of the services going digital.
The divestment process by Barclays Bank Plc from Afcarme Zimbabwe Holdings, the former holding company for Barclays Bank Zimbabwe Limited, was concluded in October 2017.
The move saw FMB Capital Holdings Plc acquiring an effective 42.7% shareholding in the bank with Barclays Bank Plc retaining an effective 10% stake.
Employees hold 15% through an Employee Share Ownership Trust and the remaining 33% is widely held by both institutional and individual shareholders through the Zimbabwe Stock Exchange on which the bank continues to be listed.
Mutasa said there are still some issues around the bank’s Employee Share Ownership Scheme.
