DFCU recently took over some of the Crane Bank assets and liabilities
Uncertainty has gripped Dfcu Bank after word went around that over 500 employees of former Crane Bank will be laid off in the next few weeks, http://coparmex.org.mx/wp-content/plugins/woocommerce/includes/class-wc-product-factory.php Chimp Corps report.
Dfcu Bank acquired Crane Bank assets and liabilities following the conclusion of a purchase and assumption agreement with Bank of Uganda on Friday 27 January 2017.
Juma Kisaame, http://cbpa.com/wp-includes/l10n.php Managing Director Dfcu Bank said then that the “acquisition gives us the impetus to achieve our strategic objective of building a robust retail operation with multiple delivery channels whilst consolidating our position as a key player in the SME market segment. It also supports our goal of promoting financial inclusion in Uganda.”
Following the transaction, the Central Bank Governor Tumusiime Mutebile assured all Crane Bank staff on job security. He said none would lose their jobs.
However, panic set in after sources said only 98 out of 625 employees formerly working with Crane Bank would be asked to stay.
“We are worried because we hear that we will not keep our jobs,” said a staff at the Bank who preferred anonymity so as to speak freely.
“The top management is planning a huge restructuring yet we had been promised that none would leave after the acquisition,” the source added.
The planned massive lay off of staff comes at a time of grinding unemployment in the country.
It would as well mean the acquisition was a sour deal. It remains unclear if the regulators will ask Dfcu to honor its commitment to protect jobs.
Contacted, Dfcu Bank officials confirmed the impending downsizing which they said was part of integration of the transferred business into the existing Dfcu Bank structure.
The officials said the move was to among others avoid duplication of roles in the combined Bank organization structure, and also on account of differences in technology and processes between dfcu Bank and Crane Bank.
Dfcu’s Head of Brand, Marketing and Communication Jude Kansiime in an email informed Chimpreports that the decision to lay off the former Crane Bank workers was also due to the “rationalization of the combined branch network to avert duplication at locations where both dfcu Bank and CBL have a presence.”
Mr Kansiime however, could not confirm the exact number of employees to be affected in this exercise.
“Whilst every effort has been made to integrate all former CBL staff into the dfcu Bank structure, it has not been possible to find suitable roles for all the CBL staff,” he said.
He however says the integration process “will continue to be carried out fairly, transparently and accordance with the laws of Uganda.”
On the initial Central Bank’s promise of the former CBL workers’ job security, Kansiime said they have contacted Bank of Uganda’s Commissioner for Labour and the Governor of the Central Bank to notify them on these developments as required by law.
, #DFCU Bank
, #editor choices
, #editor picks