First Atlantic Bank: 100 workers to lose jobs; affected workers reject severance package

About 100 workers of First Atlantic Bank are set to lose their jobs. 

This follows the decision by their new owners First Atlantic Bank to restructure the “merged” entity.

The First Atlantic Bank and Energy Bank merged during the Banking sector cleanup.

The two instructions were merged recently, with First Atlantic Bank having the controlling stake. This was due to Energy Bank’s challenge at meeting the new minimum capital requirement of GH¢400 million. 

Details of the proposed layoffs

JoyBusiness understands that about 100 workers of the merged entity are expected to go home. 

Sources at the bank say about 75 per cent of these workers are from the former Energy Bank, with the remaining 25 per cent coming from First Atlantic Bank. 

At a meeting last week, JoyBusiness understands that management proposed a month’s salary multiplied by the number of years served as part of a severance package which the workers are disputing.  

JoyBusiness is learning that the news was communicated to these affected workers last week. 

However, most of the workers are raising issues with the package being offered. 

But according to persons close to the management of First Atlantic Bank, the action was needed because of what they described as duplication of roles as a result of the merger between itself and Energy Bank. They also argue that the move was based on a review done by an independent consultant and the recommendations adopted. 

Management of First Atlantic Bank insist has been fair to all.

Some of the affected workers have argued about the approach of management of First Atlantic Bank and the fact that they did not really negotiate with them on the package being offered. 

There are also concerns about whether this planned redundancy is going against some ‘gentleman’s agreement’ reached with the Bank of Ghana after First Atlantic Bank merged with Energy Bank.  

Rejection of severance package

However, a group calling itself the Concerned Staff of First Atlantic Bank are rejecting the severance package being offered to them by the management. 

“We also want to put on record that the bank has violated our rights by not giving us at least three months notice ahead of the termination of our appointment and also failing to negotiate our severance package with us,” a statement copied to JoyBusiness has stated. 

The Concerned Staff are also urging “the Bank of Ghana to investigate some fraudulent activities involving some officials of the bank, particularly on forex transactions and fictitious loans.” 
 

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