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Heritage Bank Buys Over First Caribbean Assets, 60 Workers Sacked
posted (August 3, 2015)
But collecting the insurance on that money won't be First Caribbean's problem - and that's because they are selling out their Belize operations to Heritage Bank. A release this evening confirmed what has been rumoured for weeks: FirstCaribbean and has finalized an agreement to transfer their assets to Heritage Bank in what is called a "first-of -its-kind consolidation." The deal will still take some weeks to finalize as it has to meet with regulatory approval in both Belize and Barbados where First Caribbean is headquartered.

Managing Director of Heritage Bank, Stephen Duncan, is quoted as saying that the acquisition will cement his bank's place in the Belize market.

The CEO of FirstCaribbean's Regional Operations, Mr. Rik Parkhill is quoted as saying, "these decisions are never easy, however it was necessary to sharpen our focus on the growth opportunities we have in other markets where we operate….given the growth path we have identified we have made the difficult decision to sell our Belize operations."

And what about the employees who got the news from management today? Well, according to the Christian Workers Union - the merger is bad news for them because they will all become redundant. The union quotes CEO Parkhill, as saying that all current employees will be terminated as this is an asset sale only. The CWU laments quote, "This translates to some 60 employees left without employment as CIBC is not being merged nor consolidated with Heritage Bank, which on its own accord may elect to hire CIBC employees on a needs basis." CWU says they will remain fully employed for another three to four months while the sale is finalized - and the union will be working with the bank to ensure that q, quote, "proper exit package is crafted for..all employees to make their transition into the ranks of the unemployed," end quote.

The bank says, quote, "FirstCaribbean is very keen to minimize the impact on its employees… and intends to work diligently with Heritage Bank to ensure as seamless a transition as possible." IT adds, less auspiciously, "We have met with our staff in Belize…and have shared information about potential opportunities for them with Heritage Bank…We are fully committed to supporting our employees…through this process."

CWU says that will mean finalizing a long-overdue Collective Bargaining Agreement - for which all benefits will be retroactive to January 1, 2014.

So, apart from those 60 who will have to find new employment - what's the bottom line on the sale? Well, any check of the Central Bank records will show First Caribbean bank posting successive losses going back to the first quarter of 2011, right up to June 2015. In other words, the bank was racking up consistent losses.

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