by Curlan Campbell
- Bank expected to reply on Wednesday, 12 July 2023
- Strike initiated by Bank and General Workers Union on 29 June 2023
- Bank’s financial statement show 2020–2022 after-tax profits of $24.32 million
Strikes continue nationwide by unionised workers of Republic Bank Grenada Ltd., while negotiators on the Bank’s behalf review the labour minister’s proposal of a 12.25% salary increase.
The Bank is expected to give its reply on Wednesday, 12 July 2023. The action, organised by the Bank and General Workers Union, was initiated on 29 June 2023 after the negotiators on both sides failed to come to an agreement on salary increases.
Negotiations for a New Collective Agreement commenced on 13 April 2022. The Union’s initial position on salary increases during early stages of mediation process was 15% over the 3-year period, while the Bank remained on salaries of 5% for 3 years or 7% for 4 years.
At the end of mediation in March, the Union compromised and accepted Minister of Labour Hon. Claudette Joseph’s recommendation of 12.25% over a 4 year period, which to date, has not received feedback from the Bank.
President General of the Union Joseph Mitchell said the Bank has the ability to end strike action if it so desires, but in the meantime, the Union has no other choice but to continue or intensify protest action. Mitchell explained that several fringe benefits were agreed upon by both parties, including finally reaching consensus on Article 33, which deals with personnel incentive development plans and Article 36, which covers terminal benefits. The only outstanding article yet to be agreed upon is salary increases for the period 2020–2022.
“We seem to have gone past any contention with Article 33. And Article 36, it appears on face value that we have gone past that but the last remaining major obstacle that has to be overcome is the salary, so all 3 articles is captured in the minister’s recommendation, but obviously, the main talk is on the salaries,” Mitchell said.
According to the Union, the workers’ last salary increase was 1 January 2019, and due to economic hardship faced by employees as a result of Covid-19 coupled with the high cost of living, workers are entitled to benefit from profits accrued by the Bank over the last 2 years.
Mitchell said the Union is doing everything in its power to arrive at a resolution to this outstanding matter and is informing the public affected by the strike that the protest action will have to continue. “We believe that the Bank has the ability to bring the striker to an end today, if it so desires…But obviously, the Bank is not cooperating in this regard. They see no reason for rush, they see no reason to get this sorted out quickly. We ask the public to be patient with us. We are hopeful that we can find some resolution but at this time due to the unwillingness of the Bank. Certainly, the protests continue for some time longer.”
According to the Bank’s financial statement, for 2020, it made $7.11 million in after-tax profits, $6.81 million for 2021, and $10.39 million for the year ended 30 September 2022, totalling $24.32 million over the period. Given these figures, the Union is more than convinced that the Bank has the ability to pay a salary increase, which will only amount to $1.4 million over 2 years.
When a banking establishment making 24.3m in profit in the last 12 months is a clear sign that things are not too bad out there so tell me why they are not able to give their staffs a decent pay rise.
From what I can see is that they are closing branches and reducing staff so it is possible to accommodate a pay increase for staff members.
You really think that 24.3M is alot of money for a financial institution as a bank to make in profits???? remember a pay increase also means they will be paying more in employer contribution for NIS. Also these workers got an increase in salary in 2019.
We also need to consider the shareholders who invested their life long earning and expect a descent return each year. While I am all for worker compensation, the request must be reasonable. Because if investors did not invest their hard earn money, these workers would not have a job to begin with.