ABWU Calls for Full Protection of Workers’ Rights in Proposed CIBC Caribbean Acquisition by Butterfield

The Antigua and Barbuda Workers’ Union (ABWU), the legally recognised bargaining agent for employees of CIBC Caribbean in Antigua and Barbuda, has taken note of the announcement by The Bank of N.T. Butterfield & Son Limited regarding its proposed acquisition of CIBC’s 91.7% interest in CIBC Caribbean Bank Limited.

The ABWU acknowledges the statements made by Butterfield and CIBC Caribbean indicating that the transaction remains subject to regulatory approvals and that continuity of operations is anticipated under the successor entity.

Notwithstanding, the ABWU wishes to emphasise that any acquisition or transfer of ownership affecting employees in Antigua and Barbuda must be carried out in strict accordance with the laws of Antigua and Barbuda and the provisions governing employment relationships, collective bargaining rights, continuity of service, severance entitlements, and consultation obligations.

In this regard, the ABWU has formally written to CIBC underscoring the statutory obligations owed to employees under circumstances involving corporate acquisitions and changes in control.

In his letter, ABWU General Secretary David Massiah cited the Antigua and Barbuda Labour Code (Amendment) Act No. 9 of 2019 and the consequential amendments to section 176(g) of the Banking Act, No. 10 of 2015, which outline that employees are not to be treated as automatically transferring without the exercise of their statutory rights and election.

Specifically, Massiah underscored that “sections C40 and C44 of the Labour Code now provide that employees become entitled to severance, not only in cases of redundancy, but also where there is a sale of assets, shares, transfer of undertaking, or other disposal of the business to a successor employer.”

The General Secretary further noted that section C44 expressly provides that an employee may elect:

a) to accept severance payment from the predecessor employer, in which case the employment relationship with the predecessor employer comes to an end, and any continued employment with the successor entity must be pursuant to a new offer of employment; or

b) to decline severance payment and continue employment with the successor employer, in which case all existing benefits, rights, privileges, tenure, and continuity of service must be preserved and carried forward to the successor employer.

Citing the consequential amendment to section 176(g) of the Banking Act, the General Secretary also noted that “the Banking Act further provides that employees who elect to continue employment with the transferee institution are to continue employment on terms and conditions no less favourable than those existing immediately prior to the transfer.”

Moreover, Massiah emphasised that employees must be given a genuine and reasonable opportunity to elect whether to accept severance and terminate employment with the current employer, or to continue employment with the successor entity without accepting severance.

The General Secretary urged that the Bank proceed in strict compliance with the statutory framework and, in particular, that every affected employee be formally advised in writing of his or her statutory rights and options under the Labour Code and Banking Act.

He reiterated the ABWU’s expectation for genuine consultation, transparency, and timely communication throughout every stage of the proposed transaction on all matters affecting bargaining units and their statutory and collective bargaining rights.

Massiah underscored that the cited statutory protections were enacted by Parliament specifically to prevent employees from losing accrued rights and benefits upon the sale or transfer of businesses and financial institutions.

In concluding the letter, Massiah stated that “the Union therefore expects full compliance with both the spirit and letter of the legislation throughout this transaction process.”

The ABWU will continue to monitor these developments closely to ensure that the rights, interests, and dignity, of all affected employees are fully protected.

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