The Antigua and Barbuda Workers' Union (ABWU) is putting both CIBC Caribbean and its proposed new owner on notice — insisting that the rights of local bank employees must be fully protected throughout the pending corporate takeover.
The 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 Union acknowledges statements from both Butterfield and CIBC Caribbean indicating that the transaction remains subject to regulatory approvals and that continuity of operations is anticipated under the successor entity. However, the ABWU has made clear that acknowledgment is not acceptance — and that the law must be followed to the letter.
The ABWU has formally written to CIBC underscoring the statutory obligations owed to employees under circumstances involving corporate acquisitions and changes in control.
In the letter, ABWU General Secretary David Maissiah cited the Antigua and Barbuda Labour Code (Amendment) Act No. 9 of 2019 and consequential amendments to 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.
At the heart of the Union's position is the question of employee choice. Maissiah 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.
Under those provisions, an employee may elect to accept severance payment from the predecessor employer — ending the employment relationship, with any continued work under the new entity constituting a fresh offer of employment — or to decline severance and continue with the successor employer, in which case all existing benefits, rights, privileges, tenure, and continuity of service must be preserved and carried forward.
The Banking Act further provides that employees who elect to continue employment with the transferee institution are to do so on terms and conditions no less favourable than those existing immediately prior to the transfer.
Maissiah was unambiguous about what the Union expects from all parties involved. He urged that the bank proceed in strict compliance with the statutory framework and that every affected employee be formally advised in writing of their 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.
The General Secretary also reminded both institutions why these protections exist in the first place. Maissiah 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, Maissiah stated that the Union expects "full compliance with both the spirit and letter of the legislation throughout this transaction process."
The ABWU has said it will continue to monitor developments closely to ensure that the rights, interests, and dignity of all affected employees are fully protected.
The proposed acquisition, once approved by regional and international regulators, would see Butterfield — a Bermuda-based bank with significant Caribbean operations — take on one of the region's most established retail banking networks.
