ABSA Bank Zambia has announced a 21%-salary increment across all unionized workers for its workers effective April 2021. The salary increment means that each unionised employee will be getting an increment of K2, 500.
Absa Bank Managing Director Mizinga Melu said the increment of K2,500 positions the bank as an employer of choice in the country.
She was speaking during the signing of the 2021 collective bargaining agreement after successful negotiation between the Bank and the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) and Bankers Union of Zambia (BUZ), which the Zambian Business Times – ZBT attended.
Melu also disclosed that all employees would get a K12, 500 as management discretionary one off payment.
“After a protracted and engaging, we have unprecedented basic salary increment of 2, 500 across the board for unionised workers with effect from 1st April 2021, so we will be giving our members of staff 2500 per month as an increment across the board, this represents a 21% increment.
“Further, as management, we felt that the economy has been quiet tough as we are all aware and from this basis, we felt it is important for us to give our employees an exceptional discretionary one off payment of K12, 500. So our employees will all walk away with discretionary management payment of 12,500 in addition to the 21% salary increment,” she said.
Melu said conditions of service for the Automated Teller Machine (ATM) custodians and the card-acquiring merchants have been enhanced and would receive additional allowances. She said the bank would also give the workers in the technology department enhanced salaries as well as enhance funeral grants and allowances for accommodation and travel.
“The board has also approved an early retirement scheme that will allow Absa employees to go on early retirement at will. So we have a new early retirement scheme to allow our employees to have voluntary leave from the bank as they would like to. This is strictly voluntary and nobody is going to lose his or her jobs,” Melu added.
Meanwhile ZUFIAW General Secretary Chingati Msiska said the union is happy with the increment and it will make their members happy.
“We are happy that we have signed the collective agreement after protracted negotiations, negotiations have never been easy and as a labour movement, we are happy when we come to a conclusion.
“As a union we strongly believe in the spirit of working together as partners, being objective, being productive and being people that are going to represent the cause and the affairs of our members.
Chingati said, “It is regretted that at times differences arise between parties, we fail to find amicable solutions but it is important to note that we are there to see that these institutions like Absa remain productive, remains a bank to recon with.
And BUZ Deputy General Secretary Mwape Chanda said she is happy that the agreement will better the lives of the members.
“We are grateful for this day, we want to thank ZUFIAW that we have agreed to sign and sit together to bargain as one organization for the betterment of our employees as well as the Bank so that our members can work well and be productive as they push the bank further and improve the economy forward,” she said.
