Ecobank’s decision to suddenly sack over 150 workers across Nigeria on December 22, 2023, has left a trail of financial despair and outrage.
The employees, who had dedicated 10 to 22 years to the bank, were abruptly handed their termination letters on December 22.
However, the termination officially took effect on January 31, 2024.
Adding to the shock, these employees were cut off from the bank’s intranet on the same day they received their letters and were paid their old salaries for December, while unaffected staff enjoyed significant salary increases.
*Severance Shocker*
The severance package offered to the dismissed workers was nothing short of a disappointment. Despite their long years of service, many anticipated at least a year’s gross salary as compensation.
However, they were given a mere four months’ net salary. To illustrate, a worker expecting N10 million was handed just N2.5 million.
The situation worsened for those with outstanding loans, as these debts were deducted from their severance pay, leaving some with minimal or no compensation at all.
One ex-employee, who had a running loan of N3.6 million, was pushed into debt as his severance pay of N2.8 million was insufficient to cover the loan.
“The payment for January was made when the usual January salary was paid around January 24, 2024, while an ex gratia of four months’ net salary was paid to affected staff on February 13, 2024. The criteria used for the one-month in lieu of notice paid in January was not clear but, obviously, some deductions were made from the usual one-month salary, which made it less than normal by varying percentages,” one of them told FIJ.
“We were expected to be paid severance allowances because the bank’s decision was not a disciplinary action, and it was not a result of performance.
“But at the end of the day, we were disappointed. We were only paid a mere four-month net salary, not even the gross salary.
“An assistant manager with a gross annual salary of N10,178,000 and a net monthly salary of N644,000 was paid ex gratia of N2.5 million.
“The affected workers were at various levels, ranging from assistant banking officer to senior executive assistant, banking officer, senior banking officer, assistant manager, deputy manager and manager with annual gross salaries ranging from N5 million to N14 million. Some of us were even promoted to new levels in August 2023.
“Some of us who even had one loan or the other with the bank did not even get anything because, by the time that amount was paid, the outstanding loan had swallowed almost the whole amount.”
*A Failed Promise*
The affected workers expressed their dissatisfaction, describing the severance pay as poor and unfair. An assistant manager with a gross annual salary of N10,178,000 ended up with just N2.5 million. The disparity between expectations and reality was stark.
“We were paid peanuts, with the highest being about N3 million,” one ex-employee lamented. Another worker pointed out that the actual severance should have ranged between N6 million and N11 million, based on their old salaries, and should have been higher with the salary review implemented in December 2023.
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“We were rightly informed that they [the bank] signed an agreement with our local union that by the time they would do this exercise [employment termination], a particular amount that would be acceptable would be paid.
“But, at the end of the day, they failed on that agreement. We were also informed that at the meeting the ASSBIFI team had with them, they admitted that what they paid was far less than what they were expected to pay, which means they agreed that they owe us. They need to pay us what we deserve.
*Ignored Pleas and Frustrated Unions*
Despite their plight, the former employees received no response to their letters addressed to Jeremy Awori, the Group CEO of Ecobank Transnational Incorporated, or to the Central Bank of Nigeria (CBN).
Their union, the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), also engaged in discussions with the bank’s management but failed to reach a satisfactory resolution.
The bank had reportedly reneged on an agreed payment with the union, citing economic grounds.
*Call for Justice*
Months after their disengagement, the affected workers are still grappling with financial instability and uncertainty.
The majority have yet to secure new employment or find viable alternatives due to age and other factors.
They demand fair compensation and urge the bank to honor its commitments.
“We were committed for over 15-20 years and were paid peanuts,” said one ex-employee.
Their situation underscores a significant failure in corporate severance practices, calling for a reevaluation of employee rights and compensation standards.
