FDH retrenches 250
FDH Financial Holdings Limited, a parent company of FDH Bank and Malawi Saving Bank, has retrenched 250 of its1,020 employees as part of its restructuring process.
The bank confirmed this in its press statement released Wednesday when it updated its customers on the progress it has made since merging with Malawi Savings Bank.
FDH Financial Holdings Limited acquired 80 percent shareholding in Malawi Savings Bank Limited on July 2, 2015 from Malawi Government.
In an interview on Wednesday, FDH Financial Holdings Limited Head of Marketing , Sobhuza Ngwenya, said the redundancy of the employees was in accordance with the labour and employment laws of Malawi and good labour practice.
“This process has been undertaken in consultation with the Ministry of Labour and Manpower Development. In approving the merger, the Competition and Fair Trading Commission (CFTC) also recognised the need for FDH to implement a redundancy initiative as part of the business optimization process.
“We have now reached a stage where we are in a position to implement the workforce transition process. Regrettably, the operational requirements and the need to fulfill our contractual obligations with the Malawi Government in the sale and purchase agreement have resulted in some positions being declared redundant,” Ngwenya said.
He, however, assured Malawians that none of the branches of FDH Bank or MSB will be closed as a result of the merger of the two institutions, even in locations where they have duplication of the branches.
“The idea of acquiring MSB was to have wide branch networks. So as it stands the branches will not be closed. Our anticipation is that more and more customers will come [for our services],” he said.
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