Cabinet Urges Butterfield and CIBC to Protect Workers’ Rights in Proposed Acquisition

Cabinet has called on Butterfield and the management of CIBC Caribbean to ensure that employees’ rights and severance entitlements are properly addressed before the proposed acquisition of the bank is finalised.

The issue was considered at Cabinet’s meeting last Wednesday following concerns about the arrangements for employees in Antigua and Barbuda who would continue working after the acquisition.

At the centre of the matter is whether the proposed transaction constitutes a transfer of shares or a transfer of the banking undertaking, and how that distinction affects workers’ entitlements under local legislation.

Cabinet said the legal nature of the transaction must be clearly established so that employees’ rights can be determined in accordance with the applicable laws.

Employees have drawn attention to Sections C40 and C44 of the Antigua and Barbuda Labour Code, as amended by Act No. 9 of 2019, together with the consequential amendment to Section 176(g) of the Banking Act No. 10 of 2015.

The workers contend that these provisions protect their entitlement to severance benefits in circumstances involving redundancy, the sale of assets or the transfer of an undertaking to a successor employer.

Cabinet called on both the proposed purchaser and CIBC Caribbean’s existing management to comply fully with the Labour Code and other applicable legislation governing business transfers and employee protection.

The Government also encouraged the parties to engage constructively with employees and the relevant labour authorities to resolve the concerns and ensure that all legal obligations are addressed before the deal is completed.

While welcoming responsible investment and recognising the importance of a stable and competitive banking sector, Cabinet maintained that the proposed acquisition must proceed with due regard for the rights of the bank’s workforce.