KARACHI, March 17: The management of Habib Bank Limited (HBL) has embarked on a unique and innovative outsourcing plan which could not render any of its non-core staffer unemployed.
This was stated by HBL president and CEO Zakir Mehmood while addressing a press conference at a local hotel on Friday. Senior executive vice-president and group executive of human resource Zafar Aziz Osmani was also present on the occasion.
The HBL management had outsourced all its non-core services on March 10 involving some 2,350 employees.
Accordingly, under an agreement the HBL outsourced the services of these employees to two firms — Collateral Service Limited (CSL) and the Excellent Security Limited (ESL) — which offered them a package which was termed as better than the market package.
Under a formula, each employee would be paid a sum ranging from Rs1 million to Rs4 million.
Zakir Mehmood said that the voluntary scheme, finalized in consultation with the CBA leaders, was offered three months ago. He stated that the financial involvement of the HBL would be to the tune of Rs3 billion.
He further said that in the last two days the HBL had made a payment of Rs600 million to some 450 employees whose services had been outsourced.
He was of the view that with this outsourcing, the bank would be in a position to focus on core banking and more time could be allocated on management.
Mr Zakir said that all the 2,350 employees had been offered three years’ renewable contract, competitive salary package with life, accident and medical insurance as social security and old-age benefit scheme with the CSL and the ESL.
The shares of these two firms had been bought by the HBL and given free of charge to those whose services had been outsourced. Thus the ownership of these firms has also been given to them, he added.
Replying to a question, he said that for the time being the bank did not have any retrenchment programme.
When asked further, Zakir Mehmood maintained that the retrenchment was permissible under the law. He said that under the privatization provision, there can be no change in the staff for one year. He also pointed out that the HBL was privatized two years ago.
Meanwhile, Sindh Minister for Labour and Industries Muhammad Adil Siddiqui on Friday urged the HBL management to resolve the problems of the HBL employees amicably.
The minister was talking to HBL president Zakir Mehmood who called on him at his office. EVP Investigation HBL and other higher management officials were also present on the occasion.
Adil Siddiqui asked them not to take hasty decision regarding retrenchment of their employees as it would create restlessness among working class.
He said that due to the government’s liberal economic policy, the financial institutions had been strengthened and, therefore, interest of the general public should not be over-looked by them.
He asked the management to create job opportunities and avoid any situation of conflict with the employees.—APP