Dfcu ends lay-offs, to offer contracts to former Crane Bank employees

Photo: Edgar Batte/Uganda Business News

Dfcu Bank will offer new contracts to former Crane Bank employees left over from the integration of the two lenders, a memo sent to staff on Monday said. The new contracts will become effective on 1 April.

Dfcu purchased the insolvent Crane Bank on 25 January, three months after the troubled lender was placed under statutory management by Bank of Uganda.

The integration of Crane Bank saw Dfcu close 25 of its 46 branches, especially those in locations where it already had “points of representation.” The process also saw several former Crane Bank employees laid off.

“On the 17th March 2017 dfcu Bank limited effected the second and final phase of staff lay-offs of former Crane Bank employees who had been transferred to dfcu Bank,” the memo said.

It adds: “While every effort was made to integrate these former CBL staff into dfcu Bank, it has not been possible to find them suitable roles within the current dfcu Bank structure.

“All former CBL employees who are not impacted by the collective terminations will continue to be integrated into the dfcu Bank structure and will be issued with new contracts effective 1st April 2017.”

About 250 former Crane Bank employees were laid off, a dfcu official told Uganda Business News. Crane Bank had about 750 employees, according to its annual report for 2015.

Dfcu recently took out a $50 million loan from Arise, an investment company based in Cape Town, to help meet short-term capital requirements arising from its acquisition of Crane Bank.