HARARE – The takeover of Chartered Bank Zimbabwe Limited (SCBZL) by FBC Bank has been marred in controversy, with the Zimbabwe Banks and Allied Workers’ Union (ZIBAWU) accusing StanChart of attempting to transfer employees to FBC without honouring their pensions, gratuity, and leave days.
SCBZL was sold to FBC on June 8, 2023, with FBC acquiring 100% shareholding in StanChart and its custodial services business.
However, the transfer terms have sparked outrage among employees, who are being asked to sign a release and discharge document that the union has deemed “draconian” and “colonial in nature.”
The document requires employees to waive all rights to claims, costs, expenses, or legal action against StanChart and its group, including redundancy, severance pay, gratuity, and termination payments. In exchange, employees will receive a one-time ex-gratia payment.
“I agree to unconditionally release and discharge the Bank and/or the SCB Group in full from any and all claims, costs, expenses or rights of action, of any kind, whether contractual, statutory or otherwise (including but not limited to any claim(s) in respect of any redundancy/severance pay, gratuity award termination payment, profit- sharing, bonus, incentive and/or share option arrangement(s)…” read the release and discharge document in part.
“I further agree to unconditionally waive in full all right(s) to institute any action, petition and/or suit, both now and in the future, of any nature and description, in any administrative or judicial forum, in any jurisdiction against the Bank and/or the SCB Group.”
ZIBAWU on May 10 wrote to SCBZL CEO Mubaiwa Mubaiwa claiming the release and discharge was draconian.
The workers union urged the bank to withdraw what it said were oppressive terms of transfer and immediately engage the workers council as per the provisions of the Labour Act.
Furthermore, the union, in a letter dated May 13, also advised StanChart employees not to sign the document, which it claims violates the Labour Act.
“We have seen the contract you are being asked to sign by the bank which has conditions that are clearly oppressive and colonial in nature.
“We are seeking legal advice and in the meantime advise all workers to avoid signing them until we get proper advice from our lawyers.
“The Bank is being dishonest by mixing terms that have far reaching implications with the arbitrary ex-gracia payment in order to force workers to sign off all their rights including potential future rights at the new employer, FBC,” read the ZIBAWU letter.
Efforts by ZIBAWU to get interventions from StanChart Southern Africa CEO Kweku Bedu-Addo, were futile and the union has also sought legal advice and warned that it may approach the courts on behalf of SCBZL employees if necessary.
The takeover was scheduled to take effect on May 18, but the controversy surrounding the transfer terms has cast a shadow over the deal with ZIBAWU scheduled to lead StanChart a protest at the UK embassy on May 24.
