The prolonged legal dispute between Absa Bank Zambia and the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) regarding the non-payment of terminal benefits to employees following the transition from Barclays Bank has sparked contentious concerns as the case has dragged on for over 3 years now.
Despite mounting pressure and allegations from some bodies regarding the financial capability of the ABSA group to fulfill these obligations, the legal process remains unresolved even after three years.
This protracted legal battle has attracted intense concerns, with implications reaching beyond the immediate parties involved. The recent lawsuit seeking a declaration of the transfer’s unlawfulness and the alleged attempt to mask the corporate transaction adds further complexity to the case.
Responding to the Zambian Business Times – ZBT, inquiry on ABSA Bank’s failure to pay terminal benefits during the changeover from Barclays Bank and if ABSA is considering settling this matter out of court or will the Bank continue to litigate through the courts, Absa Bank Zambia, Head – Marketing & Corporate Affairs, Mato Shimabale said Absa Bank Zambia PLC was unable to offer additional commentary on this matter as the court had not yet concluded its deliberations after 3 years.
“This case has been active in the courts for the last three years. In light of the ongoing legal process, Absa Bank Zambia PLC is unable to offer additional commentary on this matter until the court has concluded its deliberations.” He said.
ZAMBIA Union of Financial Institutions and Allied Workers (ZUFIAW) sued Barclays Bank Zambia and ABSA Bank Zambia, seeking a declaration that the unilateral and non-consensual transfer of unionized employees of Barclays Bank to the new entity, ABSA Bank, is unlawful, null and void.
This was after Barclays Bank Zambia PLC announced in 2020 the official change of its name to Absa Bank Zambia PLC.
ZUFIAW also wanted a declaration that the so-called name change from Barclays Bank Zambia to ABSA Bank Zambia was a sham intended to mask the real nature of the corporate transaction, being a transfer of the business undertaking from Barclays Bank Zambia to the ABSA Group Limited and therefore unlawful, null and void.
As the legal saga continues, other key questions that ZBT had put out to ABSA Bank Zambia were,
“Some of the employees who were supposed to be paid their terminal benefits complained and made ZBT aware that ABSA group has the financial capability to pay but it’s the Zambian management team that seems keen not to pay out, what is your response to these indications from some of your employees?”
Mato however said ABSA Bank Zambia, was unable to offer additional commentary on this matter until the court had concluded its deliberations.
