The Chairman,

Senate Committee on Banking and Finance,

Senate of the Federal Republic of Nigeria


[b][/b]QUESTIONABLE AND MISCHIEVOUS PAYMENT OF GRATUITIES TO STAFF OF ERSTWHILE SPRING BANK PLC

When the Federal Government of Nigeria through AMCON took over Spring Bank, Afri Bank and Bank PHB in 2011, 3 bridge banks were born - Enterprise Bank Ltd, Main Street Bank and Keystone Bank and not too long after, the bridge banks laid off some of their staff in order to be effective players in the highly volatile banking environment.

Enterprise Bank Ltd also had a staff lay-off and the laid off staff were given ‘’severance/gratuity payments ‘ even though some of them had not spent 5 years as specified in Enterprise’s Bank Policy manual for retiring staff.

Again, the Contract staff (First Spring Franchise Services) of Enterprise Bank Ltd through their Union obtained a severance benefit from Enterprise Bank Ltd regardless of the number of years they have put in before their services from Spring bank Plc could be transferred to Enterprise Bank and again ALL were paid including those who were never a part of the defunct Spring Bank Plc.

However, at the moment, the tables seem to have turned as a new criterion is being adopted by the management of Enterprise Bank Ltd to deny their staff of severance/gratuity benefits. Staff that have not spent up to 5 years are weary of being denied their entitlement for all the years they have diligently spent in the service of the Banks.

In an established institution/organization/federation, consistency is paramount and policy is a vital tool towards being consistent. If Enterprise bank Ltd deemed it fit to pay-off laid-off staff that are below the 5 years stipulated in the policy and also pay-off contract staff below the stipulated 5 years, it’s only natural and humane that Enterprise Bank Ltd will pay-off every staff that they inherited from Spring Bank Plc.

It will certainly create a very tense, hostile and security lapsed environment, when most of the lower cadre staff, who are majorly the foot soldiers/frontline officers of the bank are left out in this severance benefit payment.If this plan to pay-off a certain section of the staff is true, then management will be wise to shuffle or better yet dissolve their advisers. It will be highly unwise for any management, intentionally or unintentionally, single handedly create a divide between its staff.


This whole gratuity saga now begs the following questions and even more;

1. Why should they pay staff who have not spent the ‘5 year policy statement’ earlier?

2. What were the criteria used in the payment of those who have not spent 5 years earlier?

3. Was the policy of no significance during the previous payments?


Again, it is in the papers that the Bank is being sold what would again happen to the staff who have not spent 5 years in Enterprise Bank when a new owner emerges? Wasted years again?! No this should not be!

Please, whatever the honourable Committee finds fair and honourable in the interest of the foot soldiers and voiceless workers would be appreciated. Kindly help the Staff of the Bank both existing and exited who have been in the employ of the Bank pre-Enterprise Bank Ltd to get their well-deserved gratuities.

Long live the Senate of the Federal Republic of Nigeria!