By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A union leader last night said efforts to secure new jobs for around 20 CIBC Caribbean staff are “looking prosperous” as the bank moves to shutter its Bahamas call centre by next month.

Theresa Mortimer, the Bahamas Financial Services Union’s president, told Tribune Business that she is opposed to the unit’s closure and transfer of its functions to Jamaica and Barbados but there has not been “even an acknowledgement” of her concerns.

Voicing fears about Bahamians’ private financial information being exposed to foreign jurisdictions and workers, she added that the BISX-listed bank has failed to provide evidence to justify the move on the asserted basis that this nation is simply “too expensive”.

However, CIBC Caribbean yesterday pledged to minimise job losses and any disruption involving the closure of its Bahamas customer contact centre with effect from June. And Howard Thompson, the Government’s labour director, last night confirmed the hope is that none of the 20 impacted staff will have to be terminated as he praised the bank’s proactive approach to the restructuring.

This, though, did not satisfy Ms Mortimer who asked whether the Davis administration has given the go-ahead for CIBC Caribbean to transfer Bahamians’ private financial data to other jurisdictions within the region. Given its silence, and the absence of any outcry from the Bahamian public, she is now solely focused on protecting and securing jobs for those staff who want to remain in work.

“I got the word about a month ago,” the BFSU president said of CIBC’s plans. “In the month that I got the word, I wrote to the minister of labour [Pia Glover-Rolle] and the director. No one responded; not even an acknowledgement. I wanted to hear whether or not they had heard of it, and whether they gave the OK for Bahamians’ information to be put outside the country.

“We did meet with the bank. We are in talks and, of the 20 persons, some said they want out and want to go, and for the others we are in talks as to where to put them.” Ms Mortimer did not disclose how many of the 20 want to receive their due severance pay and leave, or the number willing to stay, but added: “To me, it’s going to affect Bahamian clients because it’s their financial information.”

The BFSU president asserted that “our service from the call centre here is excellent”, while suggesting that the units in Barbados and Jamaica will not be up to the task. She added that, while The Bahamas’ customer contact centre is supposed to be a 7pm to 8pm operation, and those in Jamaica and Barbados 24-hour units, staff here have been called in to work weekends and “fill in the gaps”.

Ms Mortimer added: “It means Barbados and Jamaica are not pulling their weight, and they’re closing The Bahamas? Of course, they said The Bahamas is too expensive. That’s their reasoning.” The BFSU said she had asked CIBC Caribbean, the only unionised financial institution in The Bahamas, to supply evidence to support this assertion but it never did.

“I said to them: Obviously you’ve made up your mind,” Ms Mortimer added. “I tried to reach out to my government and the Government is not hearing me. I just need to secure jobs for my people; persons needing to work. That’s the dirty end of the stick.

“For me, I said I don’t agree with their reasoning for closing it, and the Bahamian public is not rising up and saying they don’t want their business going out of the country. They’ll only probably rise up when they’re gone. The only good thing is securing jobs for those persons who need to work. We’re in talks and it’s looking prosperous.”

The outsourcing and consolidation of back office functions, such as customer contact centres, by the Canadian-owned commercial banks is nothing new in The Bahamas. This trend has been occurring for almost two decades as the likes of Royal Bank of Canada (RBC), Scotiabank and CIBC Caribbean seek to slash costs, drive efficiencies and achieve economies of scale that boost their bottom line.

The Bahamas, perceived as a high-cost destination especially when it comes to labour, has fared poorly in this area with the likes of Scotiabank now having their customer contact centre based in Trinidad. While such cost-saving moves have not always resulted in improved customer service, the drive towards digital banking and artificial intelligence (AI) means such trends will only continue.

However, Mr Thompson, the Government’s director of labour, told Tribune Business that the expectation is “most, if not all” the 20 impacted Bahamian employees will be found, and accept, new posts with CIBC Caribbean either in The Bahamas or here. And for any who cannot find new roles, and need to stay in work, he voiced optimism that the Department will find them jobs at other Bahamian banks.

“CIBC reached out to the minister of labour and the public service and myself a couple of months ago,” Mr Thompson recalled. “They indicated a possible reorganisation was going on. They introduced me to, and discussed at a couple of meetings, this concept of digital banking which I thought was very innovative and interesting to manage the bank.

“The idea was concept. I had a couple of meetings and several teleconference conversations where we discussed the move to the concept of a digital bank centre, and possibly 20 persons would accept new roles in the digital bank centre, other departments of the bank or in other jurisdictions.

“Those who didn’t go for a new role, go to other other jurisdictions, would be able to take a package to leave and be paid out in full in accordance with the laws of The Bahamas.... The anticipation is most, if not all, persons will accept the new roles. It’s hoped no one will be severed,” Mr Thompson continued.

“If they are, they will be properly taken care of under the laws of The Bahamas and them some. They will pay what the law says and some more. A lot of the staff have been there some significant time. I left those teleconferences and meetings as the director of labour very confident that the laws are being complied with.

“As the director of labour I was left feeling comfortable they are acting in everyone’s best interest. They’ve assured me of everything I need to be assured of.”

Mr Thompson said a CIBC Caribbean executive from outside The Bahamas had flown in to discuss the issue with him, and added: “I was quite impressed that they took the initiative to engage the Department of Labour, myself and the minister and what they are trying to do.

“I know some other commercial banks are looking for persons, and if some make the decision [to leave] CIBC, the Department of Labour is very capable of getting them placed with other banks.”

CIBC Caribbean, in a statement, said The Bahamas’ closure stems from its plans to create a “digital branch” out of its current call centres as it moves to embrace electronic banking. Barbados and Jamaica will be the linchpins in this strategy.

Mark St. Hill, CIBC Caribbean’s chief executive, said: “As a dynamic business in an ever-changing banking landscape, we strive to constantly improve our business for the benefit of both our staff and our clients.

In line with our goal of providing our clients with a true omni-channel banking experience, in addition to continuing to provide first-class service in our branches, we are converting our call centres into true contact centres. In essence, we are reimagining our call centres into a digital branch.

“This move helps more of our clients, who choose to go digital, to use our self-serve channels to do their everyday banking by placing our professionals at their disposal should they need help navigating these channels. It also allows our team members to further develop their skills to become more involved in sales and act as financial coaches to our clients.”

Esan Peters, CIBC Caribbean’s chief information officer, said the plan called for The Bahamas’ contact centre to close while the one currently in Montego Bay, Jamaica, will be relocated to Kingston. “This exercise is about reallocating our resources with the best possible outcome for all stakeholders, and we are undertaking these changes with their understanding,”he added.

“Our intention is to retain any full-time members of staff who wish to remain in the company. Any employees who are close to retirement or who wish to transition out of the company will also be facilitated. There are also options for redeployment within other areas of the bank available to any employee affected by the changes.”

Janine Billy, CIBC Caribbean’s chief human resources officer, said: “We’ve had extensive consultations with our employees, our union partners and, where necessary, as in the case of The Bahamas, the Labour Department, to find the best solutions that leave each employee feeling well cared for and accommodated.

“In Jamaica, for example, we will consider employees who wish to exercise their option to move to Kingston and we are facilitating introductions to other call centres in the Montego Bay area for those who don’t. The same is true in The Bahamas where, assisted by the Labour Department, we are also facilitating introductions to other companies for affected employees.”

“For others, we are offering secondment opportunities in other areas of the business so that they can fully leverage their strengths and additional experience, secure the necessary training and eventually move into other areas of the business in which they are interested.

“We are creating what we call a Culture of Care in our bank, and these changes are within that context. Our aim is to set up our employees for success, so that they can continue to grow and develop in our company.”

Mr St Hill added: “With the expanded remit of the call centres, there may be opportunities for other employees in the company who are interested in sales and developing the specialised skills necessary to be a member of our digital branch.

“With the continued development of facilities such as our LoanStore, increased support for clients using our digital services is critical and we want our team to be fully equipped to take advantage of the available opportunities.”