CIBC First Caribbean International Bank (screenshot of Google)
Prime Minister and Minister of Finance Gaston Browne says employees of CIBC Caribbean have nothing to fear following the bank’s multi-billion-dollar acquisition by the Bank of N.T. Butterfield & Son Limited, revealing that assurances have already been given that no workers will lose their jobs as a result of the transaction.
When the news broke, the Antigua and Barbuda Workers’ Union (ABWU) called for full protection of employees’ rights as discussions continue regarding the proposed acquisition of CIBC Caribbean by The Bank of N.T. Butterfield & Son Limited.
The union, which serves as the legally recognised bargaining agent for CIBC Caribbean employees in Antigua and Barbuda, said it has taken careful note of the announcement that Butterfield intends to acquire CIBC’s 91.7 percent interest in CIBC Caribbean Bank Limited.
But speaking on his weekly Browne and Browne Show on Pointe FM on Saturday, Browne addressed growing public concern surrounding the future of staff employed across CIBC Caribbean’s regional operations, including Antigua and Barbuda.
Prime Minister Gaston Browne
According to the Prime Minister, discussions about employee welfare were part of the broader conversations linked to the acquisition, and he has been assured that the transition will not result in retrenchment.
“The staff will be fine,” Browne stated, while emphasizing that the interests of workers remain a priority.
He also sought to reassure bargaining agents and unions representing bank employees, noting that any matters relating to staffing costs or employment obligations arising from the deal would be handled responsibly and appropriately.
The acquisition, one of the largest banking transactions in the Caribbean in recent years, will see Butterfield acquire CIBC’s 91.7 percent stake in CIBC Caribbean Bank Limited in a deal valued at approximately US$1.8 billion.
Under the agreement, Butterfield will pay US$1.091 billion in cash along with US$703 million in Butterfield shares.
Butterfield, which manages approximately US$29 billion in assets, has already signalled that it intends to maintain CIBC Caribbean’s existing regional footprint, including its Barbados-based headquarters, in an effort to ensure stability and continuity for both customers and staff.
The transaction is expected to significantly reshape the regional banking landscape, creating what Butterfield describes as a stronger island-focused financial institution with expanded digital, wealth management and corporate banking capabilities across the Caribbean.
Despite the scale of the acquisition, Browne’s comments are likely to bring relief to employees and families concerned about the possibility of layoffs or restructuring in the aftermath of the deal.
Well this is very reassuring. No one wants to lose their job in these uncertain times