The Industrial and Commercial Workers Union (ICU) has warned board of directors of rural and community banks to desist from interfering in the day to day running of the banks.
The ICU is concerned that such situations undermine the smooth operation of the rural and community banks, thereby leading to confrontation among CEOs, general managers and the board of directors.
General Secretary of ICU, Morgan Ayawine, said this when he addressed a gathering of members at Wa in the Upper West Region.
“The system of governance practiced in the rural and community banks which is a stark contrast to the generally accepted corporate governance system in Ghana, is a great cause of concern. Instances are abound, where board chairmen of rural and community banks wade into the managerial and administrative functions of chief executive officers or general managers and issue query letters to staff of the banks and sometimes go to the extent of signing termination and dismissal letters to staff against best practice in labour relations,” he noted.
Morgan Ayawine bemoaned the consistent interference in the operations of the rural banks by the board of directors.
“As we know, the role of board of directors is entirely distinct from the role of management, to wit, the board of directors formulate major policies to guide the operations of the organization, whereas management is entrusted with the day-to-day administration of the organization in terms of employment, staff training, discipline, collective bargaining to ensure an orderly and systematic operations at the workplace,” he stated.
Mr Ayawine said the practice breeds tension in the workplace.
“Therefore, interference of board chairmen in the routine managerial and administrative work of the rural and community banks which is the preserve of the management of the bank, palpably disorganizes worker-management relationship at the banks which sometimes create industrial disharmony.”
He urged board chairmen who are engaged in the practice to stop.
“We therefore urge board chairmen who interfere in the day-to-day administration of the rural and community banks and usurp the assigned technocratic roles of chief executive officers or general managers to desist from such acts as it negatively impacts the efficiency, effectiveness and above all the corporate image of the rural and community banks,” he stressed.
