CBE governor pledges to protect NBG’s employees if assets are sold to Bank Audi
M&A WATCH- CBE’s Amer tells NBG employees their “rights will be protected” in Bank Audi acquisition: Central Bank of Egypt (CBE) Governor Tarek Amer said that the rights of the National Bank of Greece’s (NBG) employees would be safeguarded if its acquisition by Bank Audi goes through, according to Masrawy. Speaking on the sidelines of an event last week, Amer attempted to assuage the employees’ concerns, saying the CBE has an “ongoing commitment” to protecting workers’ rights during mergers and acquisitions. Amer’s statement comes as CBE officials are due to meet this week with executives from Bank Audi and the NBG in a bid to resolve an employee compensation dispute that has blocked the execution of the Lebanese bank’s acquisition of NBG Egypt.
Background: The employees claim that they are entitled to severance pay if the transaction goes through, as they see the acquisition being tantamount to wrongful termination under article 122 of the labor law (pdf). The grace period granted to the two banks by the CBE in which to resolve the issue expired more than a week ago. NBG did not request an extension, which has threatened to bring the acquisition to a dead end. NBG and legal counsel at Matouk Bassiouny have told employees that no severance will be payable because staff members will maintain positions at the bank after Bank Audi completes its takeover.