17th July, 2003

ILLEGAL STRIKE OF NATIONAL BANK OF COMMERCE LIMITED (NBC LTD) EMPLOYEES

 

We would like to inform the general public that on 16th July 2003 there was an illegal strike by NBC Employees in all branches. It is the position of the Management of the National Bank of Commerce Ltd (Management) that the strike is illegal and its origins will be enumerated in this statement.

 

The Voluntary Agreement between the Bank and its Employees that covered all aspects regarding retrenchments expired on 31st December 2002. Due to various reasons, a new Voluntary Agreement was not in place upon such expiry. There was also the issue of the validity of the mandate of TUICO Head Office and the so-called NBC TUICO Executive Committee to negotiate for and on behalf of NBC Employees throughout the Country. This necessitated Management to seek the intervention of the Industrial Court to give a proper interpretation of the law.

 

When the matter was instituted in Court, TUICO made an objection on a point of law that the Industrial Court of Tanzania had no jurisdiction to entertain the Application made by Management. The Court, after hearing both parties, ruled and stated unequivocally that the Court was competent to hear and determine the Application as filed by NBC Management and it also ruled that TUICO Head Office and the NBC TUICO Executive Committee has no mandate to negotiate for and on behalf of NBC Employees. Instead it is the NBC Field Branches or their duly mandated representatives who have such authority.

 

TUICO Head Office did not prefer an Appeal or a revision of the rulings by the Industrial Court of Tanzania. Management on its part was awaiting confirmation of representative of the Employees duly mandated for purposes of proceeding with the negotiation of the new Voluntary Agreement. However, NBC TUICO field branches did not take any steps to choose their representative for purposes of complying with the ruling of the Court and facilitating negotiation of the new Voluntary Agreement.

 

TUICO attempted to obtain the intervention of the Labour Commissioner who advised them to appeal against the ruling and/or apply for revision. Nothing was done by the Trade Union. For purposes of maintaining good industrial harmony, the Labour Commissioner prayed to the Industrial Court of Tanzania to make a revision of its ruling. Despite being informed of the legal procedure of how to deal with the issue, TUICO leaders proceeded to organise an unlawful strike.

 

It should be noted that for purposes of maintaining Industrial harmony, the Management of NBC Limited, decided to explain to all its workers in detail what the process is of negotiating a new Voluntary Agreement. This was done by issuing several circulars concerning the ruling of the Court, providing copies of the said ruling, issuing TUICO Constitution to all workers/TUICO Members and educating them on legal and illegal strike action and what needed to be done to continue with negotiations and the successful conclusion of new Voluntary Agreement. All this was done in good faith for purposes of informing the worker of developments and the best route to follow.

 

It would have been expected that TUICO Leaders both at Branch and National Levels would have cooperated with the Management to educate the workers regarding the issues mentioned above. To the contrary, TUICO leaders have been distorting the meanings of the rulings of the Court and their interpretations.

 

Despite all efforts by Management, TUICO proceeded to organise an illegal strike. The adverse effects on the economy of the Republic of Tanzania, the Banking Sector and the Investment community are immeasurable. NBC Limited is not the only victim of illegal acts by TUICO and its members. The entire country and its inhabitants have and will become victims of the illegal actions taken by TUICO.

 

As is evidenced by the Financial Statements of NBC Ltd, the Bank has since the privatisation in 2000 continued to grow and has shown improved profits year upon year. This has not only been to the benefit of the shareholders, it has also been to the benefit of the staff members of NBC, the customers of NBC as well as the communities and the country as a whole. These efforts are being frustrated by some members of TUICO who have decided to ignore the laws of the Republic of Tanzania as duly interpreted by the Industrial Court of Tanzania.

 

As if castigation by way of the strike was not enough, there have been direct threats and intimidation of the majority of the staff who were not willing to participate in the strike, in clear violation of the labour laws and procedures of this Country. To this end the government is requested to find lasting solutions. Law enforcement has a vital role to play to ensure that people are not intimidated to the extent that they do not have freedom of choice and/or association.

 

Should this situation be allowed to persist, the efforts of the United Republic of Tanzania to revamp its economy and attract foreign and local investors will be in serious jeopardy. It will be highly unlikely that future investors will consider investing in a country were there are clear violations of Labour Laws and the total disregard of criminal acts.

 

We request our clients to be patient during these trying times. Please be assured that the Management of NBC is committed to resolving the above issues and all will be done to ensure that no similar occurrence of this nature happens in future, and that full banking services are restored at the earliest possible opportunity.

 

MANAGEMENT - NATIONAL BANK OF COMMERCE LTD