Absa retracts retrenchment notices
The finance trade union Sasbo, which represents the majority of Absa’s employees, said on Monday (14 May 2012) that the bank has agreed to withdraw notices of retrenchment issued to IT staff.
“At an urgent meeting between Sasbo and Absa, held on Saturday evening, the union expressed its outrage at the bank having unilaterally issued retrenchment notices to IT staff via email. The union placed the bank on terms and demanded that ABSA withdraw all retrenchment letters by 12:00 on Monday, 14 May 2012.
“In a letter to Sasbo, the bank advised that it would withdraw the notices of retrenchment sent to IT staff today,” said Comfort Duma, Sasbo’s Assistant General Secretary.
“The bank has agreed to engage further with the union on this matter,” Duma added.
Absa under fire
Despite denying that it has embarked on a massive retrenchment programme, Absa has been under fire for some time for allegedly carrying out retrenchments – and, more specifically for the “cold and callous” manner in which it is apparently doing so.
Unions have claimed that up to 3,000 people are being retrenched by the bank, a subsidiary of UK group Barclays plc.
The trade union Solidarity claimed last week that Absa had notified employees by e-mail that they would be retrenched on June 9.
“Absa went even further and sent employees forms with which to resign from the company,” the union charged.
It is claimed that at least 140 employees in the IT department will lose their jobs.
“We are astounded by the callousness with which Absa is carrying out the process. First, employees were forced to pack up their belongings and escorted out of Absa’s offices. They were sent home for three months for so-called gardening leave and were told that other positions would be sought for them in the company. Now they are getting retrenched by e-mail,” Dirk Hermann, deputy general secretary of Solidarity, said.
“In effect, the employees find themselves in a position where ‘today’ they are told that ‘tomorrow’ they have to say ‘goodbye’.”
Absa conceded last week that while it was not embarking on a mass retrenchment programme that it was “managing the exit” of some IT staff.
Without stating the number of people affected, an Absa spokesman said on Thursday evening that since 2009, the bank had consistently indicated that it was endeavouring to improve efficiencies and effectiveness, while reducing duplication.
“Where the reorganisation of particular business units is necessary, we aim to minimise the impact on our people through effective processes to find suitable placement for these employees. In exceptional cases, this may not be possible,” he said.
In February this year, “some” employees in the IT business were placed on a three month re-assignment process, as per an agreement with the company’s recognised labour union, the finance union Sasbo.
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