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Zanaco starts shedding jobs

Filed under: Business,Latest News |
Zanaco Bank

Zanaco Bank

Zambia National Commercial Bank (ZANACO) has started cutting jobs by encouraging workers to go on voluntary redundancy. Zanaco is encouraging workers who have served as little as three years in the bank to leave employment in a one month programme expected to commence tomorrow dubbed Voluntary Severance Scheme (VSS).

In his message, chief executive officer Bruce Dick stated that Zanaco was undergoing structural changes as part of the “Fit2Serve” programme.

“These include improvements to the branch network to make them more efficient while being firmly focused on sales and customer service,” Dick said. “It also includes improvements in head office to ensure that we support our customer facing staff as effectively as possible. As a result of these changes and in response to requests from employees, we have reached a stage where we are able to offer some of our colleagues the option to separate from the Bank through the Voluntary Severance Scheme and in accordance with the relevant conditions for non-unionised staff. More details are set out on Zanaco intranet under VSS portal which will be active from Monday 27th June 2016 and through HR.”

Zanaco, which is controlled by Rabobank of Netherlands, stated that it had decided to offer “a limited number of voluntary exists” as it continued on the transformation journey.

“This VSS is strictly a one off opportunity which will not happen again in the near future,” Dick stated. “The VSS is open to permanent and pensionable employees only and in accordance with relevant conditions for non-unionised and unionized staff.
Management has decided to waive the minimum tenure restriction contained in the non-unionised staff conditions of services from three years to 10 years, therefore staff with 3 years of service and above can apply… please note that once an application is made for VSS, it cannot be withdrawn. The Portal will be live on Monday 27 June and a separate link will be circulated on that date.”

He stated that the VSS package was based on the Zanaco conditions of service for non-unionised workers and collective agreement for unionised staff.

Dick stated that non-unionised staff of one to 10 years of unbroken service would be entitled to 0.83 times of the monthly gross salary for every completed years of services while those in the category of 11-20 years would be entitled to 1.11 times of monthly gross salary under similar conditions. Those with 21 years and above of unbroken service would be entitled to 1.40 times of the monthly gross salary for every completed year of service.

As for the unionized workers, Dick stated that for those with between 10 and 19 years of unbroken service would be entitled to two times of the monthly gross salary for every completed year of service.

He stated that those with at least 20 years of unbroken service would be entitled to 2.4 times of monthly gross salary for every completed year of service.

“Where excess service of six months and above, it will be computed on a pro rata basis,” stated Dick. “You can calculate and estimate how much the package would be using the VSS calculator on the portal. All staff indebtedness to the Bank will be recovered in accordance with the Zanaco staff loan policy, and will be communicated to each employee upon acceptance… Once an employee applies for VSS, acceptance of the application will be at the sole discretion of management, which means that not everyone who applies will be accepted. Feedback to successful applicants will be given after close of the window. For those who leave as part of this process, I thank you for your loyal commitment over the years to Zanaco. For those who do not apply or are asked to remain in the business, I very much look forward to continuing working with you to transform our bank.”


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