By Ademola Alawiye

Wednesday, 16 Feb 2011

As the picketing by the Nigerian Labour Congress enters the third day, industry watchers urge the NLC and the bank to desist from further actions that may be prejudicial to industrial peace and harmony in the banking sector. Ademola Alawiye analyses the ongoing crisis It was not shocking to customers of Union Bank of Nigeria Plc when they woke up on Monday, February 14, 2011 and realised that the bank was under lock and key. The staff of the bank had earlier embarked on an industrial action in December, while pressing the bank’s management for improved welfare.

In less than three months, activities in the bank had been paralysed twice owing to disputes between the management and the Association of Senior Staff of Banks, Insurance and other Financial Institutions, the umbrella body for senior and management employees in the bank.

The battle started when the bank’s management embarked on a large scale lay-off in a bid to cut cost, as advised by the Central Bank of Nigeria.

ASSBIFI had kicked against the sacking of its members, describing it as arbitrary. It subsequently called for a review of each case in line with the pre-rescue era collective agreement. The bank, however, said that it only showed workers with bad records the way out.

The issues degenerated into the picketing of the bank by the Nigerian Labour Congress in December 2010 for three days. The industrial action was only suspended because the union executives had to attend the burial ceremony of the wife of the Edo State governor, Mrs. Clara Oshiomole.

The latest battle started when the management of the bank announced that it had ceased to recognise the existence of the Union Bank Association of Senior Staff and ASSBIFI in the bank.

According to the Managing Director, Union Bank of Nigeria Plc, Mrs. Funke Osibodu, the decision was taken following unlawful operations of the two unions.

The bank contended that ASSBIFI was not a legal entity, and as such, it would no longer deal with it on matters concerning the bank and its staff.

In a statement by the bank, she had said, “Following the unlawful operations of UBASS and ASSBIFI, Union Bank has withdrawn its recognition of the above trade union bodies with immediate effect. We have looked at the books and we know that our action is legal. Of course, we expect the parties involved not to be comfortable with it.

“The best option should be for them to go to court. If they decide to disturb the operations of the bank, we would not take it easy with them. Our customers, who are beginning to be concerned about our services, are our concern. We need to significantly improve on our services despite the fact that we have started recording some improvement.”

The NLC, in a swift reaction on January 17, 2011, had written the bank’s management, informing it that it was prepared to picket its headquarters and all its branches nationwide, if the bank did not withdraw the notice of non-recognition served to a faction of the ASSBIFI under its umbrella.

The Minister of Labour and Productivity, Mr. Chukwemeka Wogu, consequently invited the NLC and the bank’s management to a meeting on January 28, 2011, to discuss the issue and other grievances, which the ASSBIFI NLC affiliates had presented.

Both parties at the meeting were enjoined by the minister to attend a follow up meeting on February 1, 2011, with documentary evidence to support their claims and position on the issues to facilitate resolution.

The NLC boycotted the meeting as its representatives said the minister was taking sides, and thus passed a vote of no confidence on him.

Union Bank, following the receipt of the NLC letter, filed a motion on notice on January 20, seeking an interlocutory injunction restraining the NLC from picketing its headquarters and branches nationwide.

In a suit no. NIC/LA/01/2011, the court granted an order of interim injunction restraining the NLC, directly or indirectly, through its agents, privies, affiliates representatives or any other person(s) from carrying out its threat, as contained in its letter of January 17, 2011 to Union Bank, pending the hearing and determination of the bank’s motion on notice, dated January 20, 2011.

The President of the National Industrial Court, Honourable Justice Babatunde Adejumo, said that irreparable damage would be done to the bank as well as its numerous customers across the country if the order of interim reliefs was not granted.

The order also restrained NLC from obstructing or instigating any strike action or picketing action against the bank pending the hearing and determination of the bank’s motion on notice that was adjourned to February 10, 2011.

Acting proactively, the NLC, on the following Monday, carried on with its planned decision to picket and shut down the bank’s headquarters and its branches nationwide.

The Marina office of the bank witnessed a large crowd of labour officials in front of the bank chanting labour songs, as they barred people from going into the bank.

The NLC, in a circular made available to our correspondent, said that the picketing would continue if the current labour issues continued.

It said, “It should be noted that this will be at the first instance as congress will direct workers to join in a solidarity national industrial action if the labour situation in the bank does not change for the better after February 21, 2011 and the Federal Ministry of Labour continues to abate the illegality perpetuated by the management.”

The President, NLC, Mr. Abdulwaheed Omar, told our correspondent that the right to picket Union Bank premises was fundamental and legal.

Analysts, have, however, expressed divergent views on the issue. Some said that the banking sector was a sensitive one, which relied on confidence. As such, it should not be witnessing what had been going on in the bank.

An investment consultant, Dr. Olusegun Alege, said, “Picketing the bank was a wrong move, considering how sensitive the banking sector is. Customers, who are in need of cash will not have access to their money because of the action. They need to sit down with the bank and meet at an equilibrium, where both parties will get a fair share. If truly the union means well for the bank, then picketing should not be the last resort.”

Speaking on a different note, an expert on labour issues, Mr. Chinedu Anyanwu, said, “Unionism should be encouraged in the banks so as to watch the excesses of the banks’ management. The management of the bank should consider the sensitive nature of the bank and try to meet the needs of the union so as to end the crisis. The union has nothing to lose really.”

A customer of the bank, who simply identified herself as Mrs. Ngozi Adaeze, said, “There should be a resolution soon if not for anything but for the customers. It’s rare to see things like this in the banking sector. This is not public service where you just wake up and decide to strike.”

Source: Punch