Labour vows to resist job losses over TSA
THE National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has called on the federal ministry of finance to workout modalities on the implementation of the Treasury Single Account (TSA), without job losses in the financial sector.
Addressing journalists yesterday in Lagos, the union described the policy as a threat to the existence of some banks “due to poor saving culture, low income and high level of inflation which make surplus on income impossible”.
The union also advised the Federal Government to think of better ways of creating jobs rather than creating policy that will further cause job losses.
Led by it national president, Danjuma Musa, the union vowed to resist job losses due to the implementation of the policy, adding that as laudable as the objectives of TSA may sound, “the blanket directive to warehouse its funds in Central Bank of Nigeria (CBN), will have a far reaching implication on the economy”.
According to the union, the policy will “surely slow down business transactions because most businesses in the country depend on loans to finance their projects”.
Specifically, the union said the pronouncement came as a “wild fire in the finance industry due to the weak economy and the capacity of the banks to cope with the policy and continue in banking business”.
Insisting that members will not allow loss of jobs, Musa said: “As a union, we sympathise with the banking community due to the effect of the federal government decision in its daily operations.
“We recall during the consolidation and merger policy implementation, the effect of that policy extinguished many banks from existence and brought about serious job losses.
Similarly, the TSA pronouncement may equally further threaten the existence of some banks due to poor saving culture, low income and high level of inflation which make surplus on income impossible.
On the part of Federal Government and its decision, it should realise that as laudable as the objectives of TSA may sound, the blanket directive to warehouse its funds in Central bank of Nigeria, will have a far reaching implication on the economy.
“The TSA will surely slow down business transactions because most businesses in the country depend on loans to finance their projects.
The Nigeria economy is import-based coupled with poor saving culture and low income earnings”, Musa said.
He advised the CBN to “quickly think” of the survival of the banks and offer possible ways forward to commercial bank because, noting that the CBN cannot play the role of commercial banks.
Besides he also used the opportunity to advise the management of banks not to consider the option of downsizing.
“Already, the fear of mass loss of jobs has been reported in the media as the effect of the TSA by Federal Government. On this premise, therefore, the Union wish to advice that it is high time for the operators in the finance industry putted on their thinking caps and devise urgent means of overcoming this federal government challenge to their existence in business.
They should also think of a possible means of cutting cost on their excessive expenditures of acquiring expensive vehicles and re-invest such fund
Reduce excessive travel abroad for seminars, and board meetings. The jumbo profits declaration by most banks in the dailies should be reinvested in profitable ventures.
The Federal Government should know that Nigerians did not bargain for a policy that will further put more people into labour market. We therefore advise the Federal Government to think of better ways of creating jobs rather than creating policy that will further cause job losses.
Be that as it may, the National Secretariat wish to sound a note of warning to operators in the finance industry that any attempt for mass sack of our members as reported in the dailies without due process would be resisted.
“We are therefore, using this medium to inform all our members in the finance industry to report any threat to their jobs by any Bank Management as a result of the government policy to the National Secretariat of the Union, ” he said.