BIFM staff may sue over retrenchments
Oarabile Mosikare | Monday March 23, 2015 15:28
The restructuring exercise comes in the wake of the firm’s loss of the lucrative P9 billion-management contract of Botswana Public Officers Pension Fund (BPOPF).
Attorney Kabo Motswagole, representing the 37 employees, stated in a letter to the BIFM acting chief executive officer Neo Bogatsu, dated March 14, 2015 that it had been consistent throughout the process that his clients have never been consulted.
“If your reasons are financial, still, no consultation took place regarding how this can be improved, or what alternatives the retrenchment can be considered. Further, you have not at any point, consulted our clients regarding the structure that you think the organisation shall take post the restructuring,” said Motswagole. He said all that has been done is to dictate to his clients, in a boardroom cut throat fashion, that they shall receive the structure from management and management shall therefore implement the structures with immediate effect.
“You have also not consulted the clients on the exit package proposed. You dictate it to them without their input whatsoever. You changed the package that you unilaterally came up with, absent consultation and or the production of reasons for so doing. This was nothing but the usual corporate to down approach.” The lawyer said they have come to the considered view that the exercise the company has engaged in, to the exclusion of his clients stood to be assailed on a procedural basis.
“The demand from our client is simple, that within two days of receiving this letter, you give an undertaking that the employees or their representatives shall be afforded a chance to participate fully in the restructuring exercise and on crafting the proposed structure of the company, and a further undertaking stating that you will abide by the uncapped exit package formula previously communicated to them. Further, our clients demand good reason why they cannot be afforded exit package that are similar to BIFM’s own previous packages, rather than benchmarking to a much less profitable BIHL Sure!” he wrote. If this undertaking is not given on the second day, the employees shall approach the High Court and compel the company to play according to the known rules. On March 18, in response, attorney Tshiamo Rantao acting for BIFM, said his client has decided to reopen the issue of separation package for discussion with employees. “Our client has not intension of dealing with yours in bad faith in respect of the sensitive retrenchment exercise, nor is it its intention to treat its own employees unfairly. In the premises, we advise that our client shall shortly convene a meeting with yours with a view to discussing further the issue of separation package,” said Rantao.
Yesterday, Motswagole informed Rantao that a certain Tlotlo Mookodi and her team at BIFM, after they agreed and drew the lines, met the employees individually and presented to them the proposed new structure and exit package. “The above amounts to nothing but a brazen disregard for the law. It circumvents the Employees Representative Committee. It is a conduct, which a court on a later stage may show its mark of disapproval through an appropriate order for punitive costs, which we will not hesitate to seek.
“It has been agreed in principle between us that this is a matter which can and should be solved amicably, the said ongoing consultation, mind you counsel, is enough ground to have us approach the court on urgency for an interdict of same. May we in light of the above revelation, have a further undertaking from yours that the above illegal and unprocedural consultation shall stop with immediate effect as it places the clients on edge. And have the meeting between clients take place with immediate effect,” said Motswagole.