Bank retrenchment: Senate summons Ngige,

IN a deliberate efforts aimed at saving staff of some commercial banks in the country over ongoing mass sack in the banking sector, the Senate, Wednesday, summoned the Minister of Labour and Employment, Senator Chris Ngige over his threat to sanction and withdraw licences of banks that sack their staff. The development was sequel to a motion of personal explanation by the Chairman, Senate Committee on Banking and other Financial Institutions, Senator Rafiu Ibrahim, over the threat by the Minister of Labour and Productivity, Senator Chris Ngige, to revoke the licenses of banks that ignored Federal Government’s directive on retrenchments in banks. Senator Ibrahim explained to the Senate that the minister was widely reported to have threatened in far away Geneva, Switzerland! that banks that ignored government’s directive not to sack workers should expect sanction, including revoking their operating license. He noted that any misguided statement or directive has the capacity of a throwback on the industry. He added that it should equally be appreciated that certain statement could create a run of the banks. “Without any prejudice to the position of the minister, we want, as the Chairman Senate Committee on Banking, Insurance and other Financial institutions for us to invite the minister, the Central Bank and the banks to know if they are talking at all about retrenchment and what will happen,”he said. He added that all the banks in the country are private companies or unquoted companies. “So we want to know the basis of the directive and now the basis of the threat,” he said. Senate President, Bukola Saraki, who granted the request, said Senator Ibrahim brought the matter to him. Saraki said: “Senator Rafiu Ibrahim brought this matter to me and he has come under personal explanation of which there would be no further debate.” He said that those invited should appear before the committee. Recall that Ngige, had on Tuesday, in Geneva, Switzerland, threatened to sanction or possibly revoke the licences of commercial banks that have recently sacked their staff, contrary to a directive by the Federal Government to maintain status quo. He had stated: “The federal government gave the licences to the banks to operate and if its directives are not adhered to the licences will be withdrawn if the need arises‎. “We will go a step further if they continue. We know what to do. They need to comply. They need to come to the negotiation table. We halted the spate of sack in the oil industry and we succeeded. “Even if you are going to lay off, there is a way to declare redundancy, there is a process. Section 20 of the labour act says it. You must call the unions and discuss with them. You don’t just treat them as slaves in their own country and you want us to keep quiet. “We want them to maintain the status quo. As far as I am the minister of labour, I will protect the interest of workers; same to the telecommunication companies, they are also talking about compiling lists without discussing with anybody.” Senate President,Bukola Saraki, who presided over the session, did not allow debate on the point of order but simple asked the senators whether or not they were in support of the only prayer sought by Ibrahim, to which they answered in affirmative.SOURCE:Henry Umory & Joseph Erunk