Commercial banks face trouble

LEKOPANYE MOOKETSI
Correspondent | Thursday October 28, 2010 00:00

Standard Chartered Bank management and the workers union are in a deadlock over negotiations for a salary increase. The union is contemplating industrial action after the bank awarded them a five percent increase for non-managerial staff instead of the nine percent they wanted. Negotiations between the two parties started in April but reached a stalemate in August.  Standard Chartered has also parted ways with one of its top Motswana executives, Rutang Moses, who had been expected to take over from expatriate managing director, David Cutting at the end of his contract.

While initial reports were that Moses had resigned from the bank, Mmegi has since learnt that she was suspended before she tendered her resignation. Moses, who held the position of head of compliance and assurance, was not available for comment.  However, Standard Chartered Head of Corporate Affairs, Ithabeleng Letsunyane confirmed that Moses had left for greener pastures but would not comment on the suspension stating that they do not discuss the bank's internal matters.

Barclays Bank recently parted ways with its former managing director, Thuli Johnson under controversial circumstances.  Johnson was the second Motswana to hold that position at Barclays Bank.

Johnson took over from Duncan Mlazie, who left Barclays Bank to join politics a few years ago.  Barclays which celebrated its 60th anniversary in Botswana, is yet to fill the post of managing director.  As for FNB, Botswana Bank Employees Union recently took the bank to court following its decision to award a salary increase to non-unionised members, whilst negotiations were still ongoing with the union. The union's position is that this move was meant to undermine the spirit of collective bargaining which is recognised by labour laws.

In its interim ruling, the Industrial Court ruled that FNB should suspend paying the increment to non-unionised employees.  However, the bank ignored the court interim court order and paid the employees.

The Industrial Court has given a final order for the bank to suspend the increment until negotiations with the union are over.  However, Mmegi is reliably informed that FNB again paid the salary increase this month despite the court order.