550 Finbank & 320 First City Monument Bank Staff Lose Jobs as Banks Complete Merger Process

Posted on Monday, April 30th, 2012 at 7:41 AM

By Adeola Adeyemo

A total of 870 staff of two banks – Finbank and First City Monument Bank have been displaced as both banks complete their merger process.

First City Monument Bank (FCMB), in its acquisition bid of Finbank has caused the bank to earlier disengage 320 of their staff in preparation for the merger and integration of the two banks.

Managing Director of FCMB, Mr. Ladi Balogun, said in the process of trying to achieve the synergy of the two banks, the decision was taken to close a number of branches of Finbank that were considered not to be viable. Finbank, he said, had a total branch network of 183 and 44 of these branches will be shut down based on the fact that some of them are close to FCMB branches that are profit making and those in some other places that are not profitable.

The 550 staff of Finbank will be given the option to resign and pursue any other career of their choice through the generous severance package being worked out by the management of the two banks.

He said: “The bank’s customers have been fully briefed and we are engaged in what we call below the line communication with them and also communicate with them directly.

“We believe that the process has gone very smoothly. Unfortunately about 550 Finbank staff have been given the opportunity to resign, that 550 have almost unanimously taken up the opportunity of the offer to resign. That is a relatively small number when you compare to other banks that have gone through this exercise.

“We are retaining 70 per cent of the staff of Finbank, we also ensure we put in place very robust welfare package for those that will be affected. It includes training budget, which will be used to help prepare them if they want to go into entrepreneurship or if they want to continue in the banking industry; proper counselling, to make sure that the process is well managed and does not create too much shock for them. We have ensured that we have paid very healthy severance package when compared with what has been done by other banks.

“We have retained medical insurance for all employees and four children and we have allowed them to keep all the assets of the banks that they have— their cars, generators and so forth. Of course, any benefits that they are entitled to prior to this exercise, such as gratuity has also been retained. Why staff rationalization is necessary in any merger exercise that one may do is important that we do it with human face; we believe we have done that.

“We have been very pain taking in selecting that that will be affected and we believe that the number 550 was the optimum number; we believe that in terms of the labour market in the next five year this merger will create multiple jobs than it has destroyed. In the areas where we will be standing, we will still be recruiting.”

According to the bank, the guiding principle in the selection of those to go was merit and performance. The bank said the best in the pool of staff in both banks were retained. It said that the cost of the exercise is still being worked out and that the management of the bank is engaged in discussion with the trade unions.

‘Opportunity to resign’, ‘sack’, ‘disengage’… whatever term used, it all comes down to the same thing – hundreds of people are out of jobs thereby increasing the already saturated unemployment pool in the country.

What do you think about this recent turn of events?

News Source: Vanguard News

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  • 15 Comments on “550 Finbank & 320 First City Monument Bank Staff Lose Jobs as Banks Complete Merger Process”

    Comments
    • Personal Shopper April 30, 2012 at 7:53 AM

      Hmmmm! Nothing like being self employed sha..
      http://personalstuvs.blogspot.com

      • Daisy April 30, 2012 at 12:53 PM

        tell me about it. I just resigned from my bank job in Gh last week to get enough time to build my business. nothing more fulfilling than doing your own stuff. so much stress in the banking industry and for some of these people, this is actually a blessing in disguise. be innovative, take the risk and start something fr urself. goodluck!

    • Sexxie April 30, 2012 at 8:38 AM

      Really sad! :(

    • babe April 30, 2012 at 9:28 AM

      Employment rate is too high, and d so called government is not helpin matters, all dey do is loot.

    • babe April 30, 2012 at 9:30 AM

      Unemployment rate is too high, and d so called government is not helpin matters, all dey do is loot.

    • I April 30, 2012 at 9:33 AM

      its in Nigeria that one sleeps at night with the intention of getting back to work the next day all for you to wake up and realize your job is gone… Job Security is soo poor.

    • Laila Ikeji April 30, 2012 at 12:14 PM

      This part realy caught my attention: We are retaining 70 per cent of the staff of Finbank, we also ensure we put in place very robust welfare package for those that will be affected. It includes training budget, which will be used to help prepare them if they want to go into entrepreneurship or if they want to continue in the banking industry; proper counselling, to make sure that the process is well managed and does not create too much shock for them. We have ensured that we have paid very healthy severance package when compared with what has been done by other banks.

      So they are being thoughtful, ba? O ga oo. Nothing like having a second source of income ooo.
      Some of these bankers may have procured cars, electronics, ipads, loans all on credit hoping to pay up in months, years. What do they do now? Well, God is our provider. He’s still in charge.

      http://www.lailaikeji.com

    • Emem April 30, 2012 at 1:00 PM

      I totally concur Laila Ikeji, imagine incurring debt hoping to pay in a few month’s time only to be retrenched etc. But most of these debts you have measured are with little or no value as far as I am concerned, the only kind of debt that might have made a bit more sense is incurring debt for purchasing landed property (or starting a private business) which you could then resell to offset the debt. It is well though, may God protect and shelter the newly unemployed persons and give them the courage to push on. Haba!! Na wa o!!! This once enviable sector has been totally rubbished, it just goes to show that God knows best in every situation, I recall that there was a time when I desired being a part of this sector so much but I just could not get in. God really does take care of his own.

    • Kem April 30, 2012 at 2:11 PM

      staff rationalization is inevitable in any merger exercise. The lesson to learn is to be the best and also a high flyer in whatever u do. even if u r affected by rationalization, it wont take u time to find your footing again. also, while u still have your paid job, please don’t forget to have a plan B. I thank God i still have my job in FCMB and i just registered my start up interior design & decor company; http://homeworthinteriors.gnbo.com.ng/home I will be going for an MBA next year and afterwards, i go into entreprenuership fully. So, have a focus and give it your very best, the sky is only your starting point.

    • teeno April 30, 2012 at 2:37 PM

      A plan B is indeed essential.No job security anywhere. Think of what you can fall back on, if this happens, and get it started.

    • As it is... May 3, 2012 at 1:51 PM

      presently I’m serving in FINBANK im not on anyone’s side, but these pple protesting are just drivers and support staff “contract staff” the problem I have with the whole thing is that thre is no written contract anywhere, and thr outsourced companies are to blame. they dont even have a well structured deal with the bank so the bank can tell u to leave whenever they please. on the other hand FCMB shld be ashamed of themselves why shld they pay them 150k and send them packin when oga’s are getting 30,20,10 and trust me u dont want to know how much suzan iroche took! u just dont want to know. I used to read about Marxism and yesterday was the height. What we dont have in Nigeria is respect for each other, in other countries u dare not do this shit! there has to be a contract that covers health policy, pension and other things that shld be signed and adhered to. The fault is from the contract staff, i doubt if they will pay them after this display but it was a beautiful sight to see pple standing up for thr rights. This is the kind of spirit we all should adopt in Nigeria. the fighting spirit.

    • Dickson May 24, 2012 at 3:30 PM

      We pray God for an eye opener to opportunity within ourselves.

    • Dickson May 24, 2012 at 3:31 PM

      its well.

    • Princewill July 6, 2012 at 5:09 PM

      May God be with them. Its very sad.

    • mighty September 3, 2012 at 10:41 PM

      dis s v. Bad,so dos nt feel secured anymor in wat he or she dos,2 bad