Diamond Bank to Cut Staff

Joseph Ekeng-

The fear of sack is finding more grip in the banking sector as more banks are now set to downsize in a bid to cut down on operational cost and gain more stability.

As at last week, analysts put the figure of sacked bank staff at between 3000 and 3500. Very soon that figure could increase as Diamond bank, one of the banks that were given a pass mark by the Central Bank of Nigeria is now set to downsize.

A source close to the bank who spoke to M2 said that some of the bank staff were very surprised at the decision because Diamond bank was thought to be very sound.. Some of the banks that have so far thrown out staff are Intercontinental Bank, First Bank, Spring Bank among others.

Analysts are worried that the decision by Diamond bank to downsize and the unusual desperation by the CBN to assure the public about the soundness of banks is a sign that the bank crisis is far from over despite CBN interventions.

However, labour officials have expressed concerns about the way the exercise is being done. General Secretary of Association of Senior Staff of Banks of Insurance and Financial Institution Employees Jarvis Eromosele said recently that labour laws in Nigeria provides that companies negotiate severance benefits with staff before lay offs. “You don’t just sack, you have to negotiate. We discovered that the banks were trying to resist that and wanted to make it a free for all,” Eromosele said.