4 November 2018

Tanzania: Two Top NMB Officials Likely to Face Criminal Charges

Photo: National Micro-Finance Bank/ Instagram
FIBUCA is seeking leave to prosecute two senior officials with the National Micro-Finance Bank (NMB) Bank Plc on two criminal charges.

THE Finance Industrial, Banking, Utilities, Commercial and Agro Processing Industries Trade Union (FIBUCA), has filed an application seeking leave to prosecute privately two senior officials with the National Micro-Finance Bank (NMB) Bank Plc on two criminal charges.

Through their advocate Gabriel Mnyele, FIBUCA are accusing the bank's Managing Director, Ineke Bussemaker and Head of Human Resources, Emmanuel Akonaay of conspiracy and contempt of court for allegedly terminating a Recognition and Agency Shop Agreement between the two parties.

Senior Resident Magistrate, Kelvin Mhina who is presiding over the application at the Kisutu Resident Magistrate's Court in Dar es Salaam, has ordered the parties to appear before him on November 27, 2018 for hearing of two sought orders.

In the application, FIBUCA, as applicants, are seeking for an order for the court to grant them permission to privately prosecute the two senior officials with the bank as respondents on the two offences and that the court may issue any other order as it may deem fit.

The Recognition Agreement names the union or unions who have rights to represent and negotiate on behalf of employees in that workplace.

It will make clear whether a particular union has sole negotiating rights for a bargaining group, or whether the employer recognizes two or more unions jointly, while Agency Shop agreement is a type of collective agreement that requires employers to deduct an agreed agency fee from the wages of workers who are not members of the trade union.

The aim of an agency shop is to ensure that non-union workers, who nevertheless benefit from the union's bargaining efforts, make a contribution towards those efforts. Agency shop agreement is the agreement permitting an employee to join or not to join a labour union.

There is a pre-requisite of employment that he needs to pay the union initiation fee and the regular dues. The amount to be paid will be negotiated between recognised trade union and employer, but it shall not be more than the fees that official members of the trade union pay.

The principal officer with FIBUCA, Mr Abdallah Kinenekejo, has filed an affidavit to support the application in question, stating that sometimes in October 2009, the applicant entered into, among others, a recognition and agency shop agreement with NMB Bank Plc. As a result, he stated, FIBUCA became the sole recognized agent of the employees in the said bank.

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