First Atlantic Bank Management, Workers Disagree Over Redundancy Package

There is a deadlock between the management of First Atlantic Bank and 100 workers of the bank over a redundancy package that should be paid to them prior to their exit.

The Daily Graphic has gathered that both sides have rejected the other side’s severance package proposed for the 100 workers who are being laid off.

Offers, rejections

The workers first rejected a package presented by the bank which offered each affected worker 1.5 months’ basic salary for each completed year of service capped at 24 months; 20 per cent discount on total outstanding loan amounts, one-month basic salary payment in lieu of notice and transportation of GH¢2,000.

But after a threat of legal action against the bank, the management withdrew the offer and asked for a counter-proposal.

In their proposal, the affected workers asked for three months’ basic salary in lieu of notice, 2.5 to three months’ basic salary for each year worked, transportation of GH¢4,000, leave allowance, 13th month salary, 50 per cent discount on loans spread over four years without interest and Provident Fund for Energy Commercial Bank staff.

But the management too rejected the proposal and submitted a counter-proposal, which included 1.5 months’ basic salary for each completed year of service capped at 36 months, extension of employee’s medical cover for six months and provision of a day’s training for affected workers to deal with any psychological problems and how to manage their finances while searching for new jobs.

The tussle over the severance package started on May 2, 2019 when the management of First Atlantic Bank, which merged with the Energy Commercial Bank, e-mailed the affected workers not to report for work the following day.

“Your official letters, which will include your full redundancy package, will be ready for collection from the Human Resource (HR) Department on Friday, May 3, 2019,” the email emanating from the Head of HR, Mr Jonas Safo Baah, said.

The email made reference to a meeting held on April 30, 2019 between the management and the workers, based on which the redundancy package was reached.

A source close to the management said the redundancy was declared following an evaluation of job roles after the two banks merged.

“We cannot have two directors in the same position or other officers doing the same job when one person should be doing that,” it said on condition of anonymity.


But the affected workers said the meeting of April 30, was held under an emergency, during which their phones were seized, amidst threats to them, after which the package was “thrown” at them.

They subsequently sought help from a labour consultant, who wrote to the management to renegotiate and follow the due process in laying off the workers, as enshrined not only in law, but also the bank’s HR Handbook to all staff.

“We suggest ever so strongly and vehemently that you put all redundancy processes and severance payments on hold to pave the way for negotiations, in accordance with Section 65 of the Labour Act, 2003 (Act 651),” the letter from the labour consultant, Mr Senyo M. Adjabeng.