Ex-UCB employees demand for sh6b
May 29, 2010
ABOUT 2000 former employees of the defunct Uganda Commercial Bank (UCB) are demanding for sh6b for their terminal benefits and long service award packages.
By Jeff Lule
ABOUT 2000 former employees of the defunct Uganda Commercial Bank (UCB) are demanding for sh6b for their terminal benefits and long service award packages.
Hermezdas Mulindwa, the employees’ representative, said they needed the money to boost their new Savings and Cooperative Society (SACCO).
He was speaking at the launch of the SACCO for former UCB bankers, at the Grand Imperial Hotel in Kampala recently.
“We need this money to boost our activities so we can live better lives. There is nothing reasonable we can do if they do not give us our money,†he said.
Mulindwa, who is also the coordinator of the SACCO known as Uganda Bankers Association, said the Government only paid sh6.4b for pension and terminal benefits for subordinate staff and had not paid for other members’ benefits and long service awards.
“Senior officers were not given these benefits and we have already filed a case in the High Court. We also want the ‘long service award’ packages paid. The benefits are for people who served beyond 15 years in the bank,†Mulindwa added.
Mulindwa, a former banking assistant at the defunct bank, said they were also demanding for sh100m in pension for 16 of their members who where were not paid.
He added that the SACCO will support members through loans and savings and would eventually be transformed into a bank to support other members of the society.
The group has already raised sh45m through shares and membership fee by members.
Jim Mugunga, the senior public relations officer at the Privatisation Unit, said in the course of implementing the privatisation process, labour-related issues including settlement of terminal benefits and other employee renumerations occur.
“This obligation belongs to the companies. However, due to the financial constraints of most of the private enterprises at the time of divestiture, the Government undertook to meet these obligations and ensured that the PERD ACT provides the framework through which this can be fulfilled,†Mugunga said.
He added that it was through such a framework that the Government, through the Privatisation Unit, paid shs7b to the former employees of UCB through their own appointed lawyers on February 2009.
“If issues raised are found to be true, then the Government will have to pay,†Mugunga said.
Idah Nakawunde, the commercial officer at Kampala City Council who launched the SACCO, said it would be easy for its members to access more funds from the Government for their projects, through the organisation.
ABOUT 2000 former employees of the defunct Uganda Commercial Bank (UCB) are demanding for sh6b for their terminal benefits and long service award packages.
Hermezdas Mulindwa, the employees’ representative, said they needed the money to boost their new Savings and Cooperative Society (SACCO).
He was speaking at the launch of the SACCO for former UCB bankers, at the Grand Imperial Hotel in Kampala recently.
“We need this money to boost our activities so we can live better lives. There is nothing reasonable we can do if they do not give us our money,†he said.
Mulindwa, who is also the coordinator of the SACCO known as Uganda Bankers Association, said the Government only paid sh6.4b for pension and terminal benefits for subordinate staff and had not paid for other members’ benefits and long service awards.
“Senior officers were not given these benefits and we have already filed a case in the High Court. We also want the ‘long service award’ packages paid. The benefits are for people who served beyond 15 years in the bank,†Mulindwa added.
Mulindwa, a former banking assistant at the defunct bank, said they were also demanding for sh100m in pension for 16 of their members who where were not paid.
He added that the SACCO will support members through loans and savings and would eventually be transformed into a bank to support other members of the society.
The group has already raised sh45m through shares and membership fee by members.
Jim Mugunga, the senior public relations officer at the Privatisation Unit, said in the course of implementing the privatisation process, labour-related issues including settlement of terminal benefits and other employee renumerations occur.
“This obligation belongs to the companies. However, due to the financial constraints of most of the private enterprises at the time of divestiture, the Government undertook to meet these obligations and ensured that the PERD ACT provides the framework through which this can be fulfilled,†Mugunga said.
He added that it was through such a framework that the Government, through the Privatisation Unit, paid shs7b to the former employees of UCB through their own appointed lawyers on February 2009.
“If issues raised are found to be true, then the Government will have to pay,†Mugunga said.
Idah Nakawunde, the commercial officer at Kampala City Council who launched the SACCO, said it would be easy for its members to access more funds from the Government for their projects, through the organisation.