A proposal by Barclays Plc to cede 15 percent of its shares in Barclays Bank of Zimbabwe into an employee trust has split the workers, with low-level managers demanding revision of terms.
Over 500 workers, who are represented by the Zimbabwe Banks and Allied Workers Union (Zibawu), are happy with the donation, over which they will benefit in the form of dividends rather than share ownership.
But a consortium of low-level managers, who had initially demanded right to first refusal in the sale of Barclays shareholding in the Zimbabwe unit to Malawi-listed lender, FMB Capital, are seeking recalibration of terms for the empowerment shares.
The low-level managers have coalesced under the Barclays Managers' Association ((BMA).
"Barclays Plc wants this to be done as smoothly as possible because of their brand. They have been assured that the transaction will go through and are now negotiating with workers for a trust deed to give workers in Zimbabwe 15 percent of Barclays Bank of Zimbabwe's issued share capital," said a representative of the 500 workers who declined to be named.
This was confirmed by Peter Mutasa, the secretary of Zibawu, who said they had met regulators who expressed support for the deal.
"Yes, we are in talks with the old shareholder to negotiate a trust deed. We want to agree on modalities for the share ownership by the workers – how much will be reposed to ordinary workers and what happens when a worker dies or leaves employment and so forth," said Mutasa.
Mutasa said a bonus, amounting to five times the monthly salary of each employee, had been agreed with Barclays Plc. The workers, he said, were happy with the deal.
He also expressed satisfaction with the proposed trust deed, but said they were pressing for strong representation in the trust.
But BMA members want this offer revised.
In a letter to Barclays Plc's chairman, John McFarlane, on Monday, BMA, through their lawyers Matsikidze & Mucheche Legal Practitioners, said they were unhappy with the bonus quantum and the proposed share ownership arrangement.
"Currently, the pay for unionised staff includes payment of allowances such as rent and transport. Unfortunately, the closing bonus calculation for our clients is not being done with the inclusion of such allowances, neither is it being done to reflect years of loyalty as a token of long service," BMA's lawyers said.
They said calculations should also reflect the difference in the length of service.
While insisting that they still want to acquire 10 percent of the Barclays Bank of Zimbabwe stock, the BMA members suggested that the proposed arrangement would not benefit those to whom the benefit should apply.
"Our clients are suggesting that the beneficiaries should be able to buy and sell within the pool of shares and should benefit those who may be leaving the bank in the next two to three years rather than those who will be joining the bank in future. This suggestion serves to protect the interests of those who have been serving the bank loyally and it will in turn preserve the share value," said Matsikidze & Mucheche in their letter to McFarlane.
Alternatively, they suggested that workers be given shares based on years of service, level of employment and human capital contribution.
"Another option could be the creation of two separate trusts, one for employees and another one for managers," they said.
They said BMA had not been consulted on matters related to the proposed trust deed.
- fingaz
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