Cabinet has raised concerns about the employment rights and severance entitlements of CIBC Caribbean workers in Antigua and Barbuda as it considers the implications of the bank’s proposed acquisition by Butterfield.

Director General of Communications Maurice Merchant said Friday that representatives of staff had expressed concern about how their benefits would be handled if the acquisition proceeds.

He stressed, however, that the concerns did not arise from an announced Butterfield position denying those benefits.

“It’s not that they have been informed that this is the position of Butterfield, but they expressed some concern that this might be a possibility,” Merchant said during the post-Cabinet media briefing.

He described Cabinet’s intervention as a reminder that any transfer must respect Antigua and Barbuda’s laws.

Employees have drawn attention to sections C40 and C44 of the Labour Code, together with an amendment to Section 176G of the Banking Act, Merchant said.

According to his account, the workers contend that those provisions protect severance rights in circumstances involving redundancy, the sale of assets or the transfer of an undertaking to a successor employer.

Cabinet’s position is that employees’ rights and entitlements must be considered under local law when a banking institution changes ownership, he said.

“Severance and other benefits must be a part of any package that includes the takeover of any establishment,” Merchant said. “So it’s basically just a reminder.”

Asked whether the government would seek further information or assurances from Butterfield, Merchant reiterated that Cabinet was responding to concerns raised by staff representatives.

He did not announce a specific agreement on severance payments or other employment arrangements connected with the acquisition.

This article was originally published by Antigua News Room. Read the original article here: Cabinet raises CIBC workers’ severance concerns over Butterfield acquisition.