The federal government has said it will sanction banks and telecommunication companies that are still carrying on with retrenchment despite the directive to halt it.
Minister of Labour and Employment, Dr. Chris Ngige, issued the warning at the 105th session of the International Labour Congress (ILC) in Geneva, Switzerland.
The minister noted that the banks are not greater than the government and thus th government can take punitive steps against the banks if they fail to comply with its directive.
“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government gave the licences to the banks to operate and if its directives are not adhered to the licences will be withdrawn if the need arises,” he said.
“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.”
On Friday, Ngige had, on behalf of the government, issued a directive to banks to stop laying off workers.
However, the following working day, Monday, Skye Bank had laid off 175 staff.
Ecobank also sacked over 1,040 staff a week earlier.
The banks claim that current economic situation in the country has left them unable to maintain the staff strength they used to keep.
Ngige, CBN Boss, Bank Chiefs Summoned Over Mass Retrenchment
The Senate on Wednesday requested the presence of the Labour and Employment Minister, Dr. Chris Ngige, the Governor of Central Bank of Nigeria, Dr. Godwin Emefiele, and heads of the various commercial banks to discuss on the recent retrenchment spree going on in the banking sector.
No date has been fixed for the invitation.
The attention of the senators was drawn to the retrenchment in the banking sector by the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Rafiu Ibrahim.
Ibrahim, armed with newspapers’ reports, specifically noted that the statement credited to the labour and productivity minister on the issue, allegedly contained some threats which could worsen the situation in the sector.
He explained that the threat allegedly issued by the Federal Government to withdraw the operational licences of any bank that failed to reverse the on-going mass sacking or halt the exercise forthwith, was unhealthy for the sector.
“They (federal government), gave directives to the banks not to retrench but banking, being a very, very sensitive industry, any misguided statement or statements can have a throwback on the industry. It can make or mar success of the banks. So it is a simple thing without any prejudice to the position of the minister.
“We want , as the chairman senate committee on banking, insurance and other financial institution, for us to be able to invite the minister, the central bank and the banks to know if they are talking at all about retrenchment.
“We also want to know what will happen if the threats are carried out bearing in mind that all the banks in Nigeria are either private companies, or quoted companies. So we want to know the basis for the directives and the basis for the threat.
President of the Senate, Bukola Saraki, who presided over the session, did not allow debate on the point of order but simply asked the senators whether or not they were in support of the only prayer sought by Ibrahim, to which they answered in the affirmative.
It was not certain if Emefiele and the bank chiefs and the senate would appear in plenary or before a committee of the red chamber.
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