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Court Tells Central Bank to Stop “Nuisance Actions”

 

 

The Federal First Instance Court ordered the National Bank of Ethiopia (NBE) to “stop nuisance actions” against the Labour Union of the bank.

 

The dispute began when the Bank's management issued the notice to evict the labour Union from their offices in Centeral Bank building along Sudan Streat on January 23, 2009. The Labour Union shortly contacted the Confederation of the Ethiopian Trade Unions (CETU) with its concerns. On January 26, 2009, CETU dispatched a letter to the NBE pertaining to the order to disband the Labour Union. In their letter, CETU suggested a meeting in order to resolve the fall out. That same day, at the NBE's rejection, the Labour Union filed the charge against NBE at the Seventh Civil Bench of the Court, on January 26, 2009. They filed charges to delay the deadline of the dissolution of their office.
 

According to the charge, NBE intervened in the internal cases of the union by discontinuing collections of union contributions from members’ pay. The plaintiff attached supporting documents.  Its accusations, which include letters from Industrial Federation of Banking and Insurance Trade Unions of Ethiopia (IFBAITUE).

 

The defendant responded to the charge on February 17, 2009 by referring to a regulation the Council of Ministers approved on December 30, 2009. The regulation that governs employees of the Bank, was a counter argument by the defendant which claimed the regulation nullified the Union and there should not be one in the organization. The labour union can not sue or be sued because its legal personality has been terminated by the regulation, the defendant argued.   

 

The court reached a decision on June 9, 2009, after it scrutinized the issue based on the specific points of arguments from the litigants. Thus, it ruled that the regulation does not say anything about the existence of the labour union, and the regulation could not invalidate legal personalities that are established on proclamation. Any such personality shall lose its legal status by another proclamation or through legal procedures as stipulated in the proclamation.  

 

Therefore, though it is the defendant’s property, it is wrong for NBE to use the office, according to the court’s ruling. Thus, NBE’s action to displace the labour union, while it is not legally dissolved and to make its members stop their monthly contributions is harassment, the court stated.

 

“The association has been working with the bank’s management for the same goal for over three decades,” Abenezer Bewengel, chairperson of the Union told Fortune. “We did not understand why the management wants to quell the Union.”
 

Nevertheless, the court stated that collecting the monthly contribution from members of the Union is considered something the defendant does on its own will.
 

“We are very excited,” Kabtyimer Kebede, the president of IFBAITUE told Fortune.
 

NBE is not alone in the pursuit against the existence of this union. The Ministry of Labour and Social Affairs (MoLSA) also filed a charge claiming that the union should not be allowed to exist. MoLSA had taken its case to the Federal High Court on February 19, 2009. It requested the court to rule against the union based on the same regulation the Council approved.

 

The Court examined how the regulation proposed the dissolution the Union.which was established in 1975.

 

Due to the  absence of proper legal procedure to dissolve the Union on the part of MoLSA, the court rejected the request, reads the verdict the court passed on May 27, 2009.  The Federal High Court found this accusation unacceptable since it was not based on law. And finally the defendant was ordered to pay 400 Br to compensate the cost the plaintiff has incurred due to the accusation.

 
 

By ABIY WENDIFRAW
FORTUNE STAFF WRITER

 
 
 
   
   
   
 
 
 

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