By investadvocate

Jan 18 2011 17.20 GMT

Lagos (INVESTADVOCATE)-The Funke Osibodu led Management of Union Bank of Nigeria Plc (UBN) on Monday January 17 2011 sacked 13 staff of the Bank; as it is set to issue a Circular Wednesday January 19 2011 to all members of staff  to denounce unionism.

 

investadvocate exclusively gathered that Management of the Bank has concluded plans to coerce  staff of the Bank to denounce their membership of the local chapter of Association of Seniour Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), both affiliated to the Nigerian Labour Congress (NLC) through the expected Circular.

 

Our Source (name withheld) affirmed that staff should not abide by the Circular by withdrawing their membership of the Union, “if it is eventually given, they must be reminded that giving in to this devilish trick has enormous implications. Members must not withdraw from the Unions if they want to retain their jobs” the source said.

 

The 13 staff of the Bank sacked Monday 17 2011included Thaddeus Chigozie Ogbonna, General Secretary of the local chapter of ASSBIFI.

 

investadvocate also gathered that Tuesday January 18 2011, the Union office of the Bank located at No. 131 Broad Street was cordoned by men of the Nigerian Police and Army seen to have arrived with two Hilux Toyota truck.

 

The sack is coming on the heels of a terse Press Statement issued by the Bank and an announcement Thursday January 13 2011 by Osibodu, that Union Bank has withdrawn its recognition of the local chapter of ASSIBIFI and Union Bank Association of Senior Staff (UBASS).

 

The Statement titled “Withdrawal of recognition of Union Bank Association of Senior Staff (UBASS), Association of Senior Staff of Banks, Insurance and Financial Institutions (NLC Affiliate) (ASSBIFI)” reads thus:

 

“Following the unlawful operations of UBASS and ASSBIFI, Union Bank of Nigeria Plc has withdrawn its recognition of the above named trade union bodies with immediate effect. All concerned have been duly advised. The general public should please take note”.

 

Osibodu and other Management team of the Bank had affirmed that the strike action of mid-December 2010 embarked on by the staff of the Bank was illegal and will definitely take disciplinary action against those involved and found to have gone contrary to the terms of offer as regards their employment with the Bank.

 

Following this development, the Nigerian Labour Congress (NLC) Friday January 14 2011 in Abuja Nigeria issued a seven day ultimatum to the Management of Union Bank of Nigeria Plc (UBN) to reverse their action on the withdrawal of its recognition of the two Unions of the Bank.

 

investadvocate in a telephone chat sought to confirm the story from Francis Barde, Principal Manager, Corporate Affairs of the Bank. He confirmed the story and affirmed that the sacking of the staff was based on disciplinary measures.

 

“The staff were found wanting in the discharge of their duties and were sacked based on disciplinary measures, those affected was not because of the roles they played during the last strike action embarked on by the staff of the Bank” Barde said.

 

The Bank had affirmed that some of their staff were found to be exposing false and confidential customer information to the public, including shareholders.

 

On the issue of the seven-day ultimatum issued by the NLC to the Management of Union Bank to reverse their decision on the non-recognition of UBASS and ASSIBIFI, Barde said that the Bank has engaged the Labour Congress on discussion and would definitely come out with a solution to the problem. “No problem without a solution” he said.

investadvocate had on Friday January 14 2011 published on its news website that  sacking was imminent at Union Bank over staff involvement in a recent strike action the Management of the Bank said was illegal.

Since mid year 2010, the local chapter of ASSIBIFI of Union Bank has been in a face-off with the Management of the Bank.

 

The issues which the workers are agitating for include the salary structure and pension policy rolled-out effective July 01 2010, reduction in terminal benefits (gratuity), ethnic prejudice, the wide disparity in the overseas medical allowances of members of General Management and the Directorate amongst others; which the staffs were unhappy with.

 

Others are massive layoff of workers without following due process, the cut off of workers’ salaries, and tax deductions.

 

However, Management of Union Bank in its reaction to the allegations; said that it has addressed most of the issues raised by the Union Leaders of the Bank and are still looking at resolving the others.

 

The workers has been in this face-off not long Osibodu takeover the helms of affairs of the Bank; following her appointment August year 2009 by the Central Bank of Nigeria (CBN) after the removal of Chief Executive Officers (CEOs) of five Nigerian Bank’s which include Barth Ebong former GMD of Union Bank.

As earlier reported, the reason for this action, Lamido Sanusi, the Governor of the CBN affirmed was to safeguard Nigeria’s financial sector from systemic collapse.

Sanusi confirmed that an audit exercise conducted by CBN’s examiners, it was discovered that five of the banks had accumulated margin loans of N500 billion, among other loans, that had gone bad and eroded their shareholders’ funds.

“Some of these banks are quite large institutions and they have been mismanaged, so we had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.” he said.