UPDATE 1-Tanzania's Microfinance bank workers strike
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DAR ES SALAAM, Sept 22 (Reuters) - Workers at Tanzania's National Microfinance Bank (NMB), due to list on the Dar es Salaam Stock Exchange in October after an IPO, went on strike on Monday over benefits, the bank said.
NMB Chief Executive Ben Christiaanse told a news conference all the branches were closed on Monday and the bank, Tanzania's largest by number of branches, customer deposits and profitability, declared the action illegal.
In contest is payment of a lump sum benefit to NMB's workers arising from its privatisation in 2005, when the government first offloaded a 49 percent stake.
"We as NMB regret very much the situation that is in our bank at this moment. The reason for the strike is that the lump sum has not been paid and that the government is still finalising the decision," Christiaanse said.
"From my point of view, this strike is not legal," he added.
The bank has more than one million customers and 120 branches and plans to double the number of ATMs by the end of the year from a current 100. The strike's pinch will be felt later this week when civil servants are due to receive their salaries.
The government, which has a 51 percent stake in NMB, is selling 21 percent of the bank worth 63 billion Tanzania shillings ($53.75 million), and 5 percent of this is reserved for the bank's workers.
The share offer, open only to Tanzanians, closed on Sept. 8. It was about three times over-subscribed. Christiaanse said the strike would have minimal effect on the company's listing on the bourse.
NMB's prospectus shows the union was demanding a lump sum payment before the government offloaded its shares, but added that it would mean that the workers would have to waive their rights to the 5 percent stake.
The bank's roughly 2,000 workers are represented by the Tanzania Union of Industrial and Commercial Workers (TUICO). It was not clear how long the strike would last.
Rabobank [RABN.UL] of the Netherlands owns 34.9 percent while Exim Bank Tanzania Ltd, the Tanzania Chamber of Commerce Industry and Agriculture and National Investment Co Ltd NICOL.TZ own 14.1 percent.
