Why Exim Bank plans to retrench employees

Dar es Salaam. The Exim Bank Tanzania this week announced that it intends to retrench in the backdrop of technology improvements and operational process review.

Mr Stanley Kafu, the head of marketing and communications at the bank, which until the end of last year had 604 employees, yesterday confirmed to The Citizen about the intended retrenchment, but was not in a position to say how many were to be affected.

The Exim Bank’s statement, which was signed by its Human Resources head Frederick Kanga and went viral yesterday, shows that the contemplated retrenchment process commenced yesterday and is expected to end on February 28, this year.

Mr Kafu said the bank was implementing some strategic measures with an intention of enhancing efficiency. The measures include technology improvements and operational processes review.

“We had no option, but to make huge investment in technology to improve our services despite the fact that it will affect some workers,” Mr Kafu told The Citizen.

Recently, the bank had made an improvement in its sybrin whereby there is no requirement of “maker” and “checker” at the branch level, according to the statement.

The statement added the bank has simplified some branch operations in all of its 30 branches.

“Due to the exercise, the bank’s operations will require fewer manpower in most of our branches compared to previously,” it reads in part.

The bank pledged to make thorough consultation with each affected staff. “We would like to reassure you that the management has taken this matter with its sensitivity and it is committed to be fair and transparent throughout the process.”

The statement added that the bank would handle the matter as per the Employment and Labour Relations Act, No. 6 of 2004 and the Employment and Labour Relations (Code of Good Practice) GN No. 42/2007.

The lender said during the scheduled series of meetings, the affected employees will be engaged on reasons for intended retrenchment, alternative measures to retrenchment and process of retrenchment.

They would also be engaged in a number of affected employees, criteria to be considered, retrenchment package and any other matter pertaining to the intended layovers.

“It is our hope that you will take these changes objectively and with the highest level of cooperation,” the bank said in the statement.