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African Bank has announced plans to lay off hundreds of its employees.
The bank’s chief executive, Basani Maluleke, said Tuesday afternoon in a press release that the planned job cuts were due to a reduction in sales due to the Covid-19 shutdown. However, the bank workers threatened to go on strike if the company proceeded with the dismissals.
“African Bank has initiated a consultation process with its recognized union, Sasbo, as prescribed in the terms of section 189 (3) read in conjunction with section 189A of the Labor Relations Act, Law 66 of 1995,” said Maluleke.
“1,269 employees out of the current 3,728 total are expected to be affected. The bank anticipates a job loss rate of approximately 25% of the number affected. In the past 12 months, African Bank has not laid off any employees for operational needs.” .
African Bank and Sasbo have currently agreed to a facilitation process for the Commission for Conciliation, Mediation and Arbitration (CCMA) to consult on all pertinent issues, “said Maluleke.
He said the Covid-19 outbreak and the associated prolonged lockdown intensified the dire state of the economy. “Given the financial pressure our clients are facing, the bank has seen a reduction in both sales and collections, which has created excess capacity in the different business units.
“In addition, the bank has gradually automated processes across all of our operations and implemented the omnichannel digital platform to reduce duplication and increase efficiency. Consequently, this has led to redundancies and required the bank to assess its current resource capacity. , which may require reducing duplication of functions. “
He said that the bank has implemented over the years various initiatives to reduce costs and align its operating model to the cost base, in line with economic reality, to ensure the sustainability of the business and remain competitive.
“Therefore, it has become imperative to restructure the Bank and therefore to engage in consultations that can lead to job losses. We have been deliberate in reducing costs in all areas of our business.
“Conducting a consultation process with our employees is the last resort to further reduce costs. Our intention throughout the process will be to consider appropriate steps to avoid and minimize potential job terminations. During these disturbing times, we will continue to deliver the exceptional service our customers have grown accustomed to. “
Sasbo finance union general secretary Joe Kokela criticized the downsizing process “inhuman and bogus.”
“We do not take this in good spirits. I think we will ask for the right to strike and if that means we have to close the African Bank, so be it, as we will do whatever it takes to take action where we send a clear message to him. capitalist that they must practice capitalism with a conscience, ”he said.
Kokela raised concerns about the bank’s planning to lay off workers just months before the holiday season.
“We are heading into the holiday season and how it negatively affects workers who are mothers and fathers just before December. How do you expect your children to survive,” he said.
“We also regret the decision made by the bank, especially when the country is mourning the Covid-19 and while there is a blockade. What they are doing is inhumane and disinterested. The people who plan to reduce are the members who have led the bank. when the bank was in conservatorship.
He added that the bank was taking the action while they were in the middle of salary negotiations. “This is a clear way to intimidate workers and an unfair form of negotiation.”
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