Addis Abeba – Close to 2,500 employees hired through the outsourcing entity Commercial Nominees and currently working as customer service representatives and document control clerks at various branches of the Commercial Bank of Ethiopia (CBE) are at risk of job termination.
In an interview with Addis Standard, the employees disclosed that they were notified by Commercial Nominees via a formal letter that their employment contracts will be terminated, effective 31 August, 2024.
One of these employees, who has worked as a lobby attendant at CBE for nearly four years and requested anonymity, disclosed that they were notified a month ago of the impending termination of their contracts.
“We are just waiting to see how things unfold,” he stated.
The bank concierge claims that CBE has decided to streamline its operations by transitioning the roles of lobby attendants and file operators to its own staff, reflecting a shift towards utilizing in-house resources.
Another employee who spoke with Addis Standard claims that while the bank offers a monthly salary of 9,000 birr, these workers receive only 4,000 birr, with a disproportionate share of the bank’s workload falling on them.
“Despite fulfilling numerous responsibilities and achieving targets, the compensation has been inadequate, and now we are confronted with the loss of our jobs,” the employee stated.
Some of these employees also allege experiencing mistreatment and rights violations in their roles, feeling as though they were being treated merely as commodities.
Bazezew Atla, deputy chairperson of the Commercial Nominees Workers’ Association, informed Addis Standard that while approximately 2,500 employees are currently facing layoffs, this number may potentially escalate to 7,000 nationwide.
He also noted that some of these employees have been affiliated with the institution for up to ten years and described the absence of severance or moral compensation as particularly concerning.
“The association is advocating for severance pay and compensation for affected employees,” Bazezew revealed.
The Deputy Chairperson also noted that the CBE has indicated it will offer compensation only to employees who have been associated with the company for over five years.
“If a satisfactory response is not provided to all employees, the association is prepared to pursue legal action,” Bazezew emphasized.
Established in 1965, Commercial Nominees work with 35 institutions, including CBE and other private banks, in addition to state-owned enterprises and various non-governmental institutions.
It began operating independently as a private limited company (PLC) in 1993 and has since provided a range of outsourced services, including delivering Western Union Money Transfer service as a sub-agent of CBE, overseeing the administration of real estate properties, and handling share subscription and registration tasks.
According to the company’s official website, Commercial Nominees offers 15 services and generates employment opportunities for 42,000 individuals.
Confirming the impending layoffs of thousands of employees, Bahru Melese, President of the Commercial Nominees Workers’ Association, expressed concerns about potential future reductions in other roles beyond the two positions.
“The situation is alarming, and government agencies and all relevant parties need to address this issue promptly,” the president of the association stated while calling for immediate action.
In response to an inquiry from Voice of America, Commercial Nominees emphasized that the issue does not involve CBE directly.
“Due to the elimination of two positions by CBE, the contracts of 2,500 employees assigned to these roles will be terminated,” stated Commercial Nominees. “We are actively working to reassign these employees to our other clients.”
Efforts by Addis Standard to obtain a comment from Commercial Nominees were unsuccessful. AS
