A proposed acquisition of CIBC Caribbean by the Bermuda-based financial group Butterfield has sparked official intervention from the Cabinet of Antigua and Barbuda, which has moved to prioritize the protection of local employees’ job rights and statutory severance entitlements amid the ownership transition. During a post-Cabinet media briefing held Friday, Director General of Communications Maurice Merchant outlined that the government’s action was directly prompted by concerns raised by representatives of CIBC Caribbean’s local workforce, who have questioned how their employment benefits will be handled if the acquisition is finalized. Merchant emphasized that the workers’ anxiety does not stem from any formal statement from Butterfield rejecting the protection of these benefits – instead, staff are voicing preemptive worry that their entitlements could be sidelined as part of the ownership change. “It’s not that they have been informed that this is the position of Butterfield, but they expressed some concern that this might be a possibility,” Merchant clarified to reporters. The workers have specifically referenced binding local legislative provisions to back their claims: sections C40 and C44 of Antigua and Barbuda’s Labour Code, alongside an amendment to Section 176G of the national Banking Act. Under these existing laws, employees are guaranteed severance rights in scenarios including workforce redundancy, asset sales, and the transfer of business operations to a new successor employer. Merchant explained that Cabinet’s intervention is fundamentally a formal reminder to all parties involved in the potential transaction that any transfer of business ownership must fully comply with the country’s existing labor and banking regulations. The Cabinet’s official position holds that all employee rights and legally mandated entitlements must be fully evaluated and upheld in accordance with local legislation whenever a financial institution undergoes a change in ownership. “Severance and other benefits must be a part of any package that includes the takeover of any establishment,” Merchant added. “So it’s basically just a reminder.” When pressed on whether the Antigua and Barbuda government would request formal additional information or binding assurances from Butterfield regarding employee benefits, Merchant confirmed that the Cabinet’s current step is a direct response to the concerns submitted by staff representatives. As of the briefing, no specific finalized agreement on severance payments or other employment terms tied to the proposed acquisition has been announced by the government or the parties involved in the transaction.
Cabinet raises CIBC workers’ severance concerns over Butterfield acquisition
