In a brewing labour dispute at Global Bank Ethiopia, tensions are on the rise as 315 employees including union leaders find themselves terminated by the management. The discord revolves around the Board of Directors' decision chaired by Bikila Hurissa to outsource certain services and concerns over unmet educational qualifications.

Formerly known as Debub Global Bank, the 12-year-old financial institution has its workers, trade union leaders and management failing to see eye to eye.

Daniel Mamo, the human resource manager, attributes the terminations to a mere preference for outsourcing and the necessity of meeting educational qualifications. The letter dispatched to employees was penned last month and was brought to the attention of the Addis Abeba Labor & Skill Bureau, the Confederation of Ethiopian Trade Unions (CETU) and Ethiopian Financial Trade Unions (IFEFTU) with efforts for mediation by labour advocates hitting a roadblock.

Union leaders are considering taking the case to court. Desta Berhe, president of the Ethiopian Financial Trade Unions, reveals that despite informing the bank management about the legal implications of terminating union leaders, a resolution remains elusive.

"Only the courts will resolve this issue," he told Fortune.

The labour dispute traces its roots back to changes made in May 2023, where amendments to working conditions and overtime payment modalities sparked grievances among workers. A union was formed in response, countered by management with a Worker's council. Despite a ruling by the Addis Ababa Labor Relation Wage Board to merge the two unions three months ago, tensions persist.

Abebe Meknonen, head of the former union, alleges that the terminations are a consequence of advocating for better working conditions.

"We were let go for attempting to bargain on behalf of workers," he said.

The city Labor & Skills Bureau received a complaint from the Global Bank's original trade union four months ago. It alleged being forced to migrate from its current union to a new one under the management's influence, failure to fork up legally stipulated monetary contributions and refusal to appear for meetings from the management side.

As the dispute escalated, a meeting comprising union leaders, employees and the Bank's management staff was called by the Bureau two weeks ago to carve out amicable terms.