Uninsured former BancABC employees haunted by Chidyausiku Ghost

Uninsured former BancABC employees haunted by Chidyausiku Ghost

- in Life Insurance, News

MORE than 40 former BancABC workers whose contracts were terminated on notice
following the infamous 17 July Chidyausiku judgment are set to lose their properties over their failure to repay loans.

The workers, whose contracts were terminated in 2015, had obtained loans based on their continued employment with the bank since they were full time employees.

On termination they were paid two weeks’ salary for every year served as retrenchment packages, which was not enough to offset the loans. Paul Mudzadza a former bank employer told VOA that some of the former employees got as little as $1,000 when they had loans of more than $10,000.

BancABC has started attaching the properties of the former employees in a move that will take away their investments and expose their families to a lot of risks, not to mention the emotional stress.

Speaking to New Zimbabwe the employees bemoaned the lack of insurance cover to protect both employees and themselves in such situations.

Life insurance policies such as Retrenchment Insurance or Credit Life Insurance could have protected the employees from losing their properties due to failure to pay loans. Life polices can offset loans in case of death they can also make loan repayments of 3 or 6 months in the event of retrenchment.

In the lack thereof of insurance policies the former employees have turned to President Mugabe to flex his muscle and order the bank to offer reasonable re-payment terms, tenure and even write offs in some deserving cases.

“The bank was allowed to get away with murder as it exploited the deficiencies in the current retrenchment laws and paid pittances despite the fact that it had the capacity to pay reasonable retrenchment packages,” they said in a petition signed on their behalf by ZIBAWU (Zimbabwe Banking and Allied Workers Union) General Secretary, Peter Mutasa.

The petition was copied to the Ministry of Labour, Uni Global Union, Zimbabwe Congress of Trade Unions and to the Managing Director of BancABC.

The former employees said government should do everything in its power to ensure that they were not further abused by their former employer, who they accused of putting their employment security at risk.

The former workers also staged a two-hour demonstration at the BancABC Samora Machel Avenue branch to register their displeasure with the banks management.

Meanwhile scores of employees are set to be retrenched if the First Mutual Holdings Limited and Nicoz Diamond Insurance Limited merge goes through, hopefully the employees had taken enough insurance cover to protect themselves from property seizures that former BancABC employees are facing.

Source: New Zimbabwe

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