Big four bank Absa has hit back at allegations that it has implemented a mass retrenchment plan within its IT unit, saying staff have been temporarily reassigned.
Absa denies it has retrenched staff, despite outcries to the contrary from disgruntled former and current staff. Instead, it says some staff members have been reassigned for three months and will be able to apply for new positions through its recruitment centres.
Yesterday, disgruntled former and current staff reacted angrily to news that the bank had told all 1 600 staff in its IT division to reapply for jobs across the group. Absa said it was reorganising IT across the group as part of its ongoing process to improve efficiencies.
Commenting on ITWeb, readers who say they work for the company's IT unit claim staff have been escorted out of the building. Various numbers of staff - between 300 and 1 000 - have allegedly been told to pack up their desks and leave.
However, Absa denies that staff have been retrenched, saying they are “on reassignment for the next three months”. Some readers allege the bank has unilaterally implemented an outsourcing model.
However, yesterday finance union Sasbo assistant general secretary Comfort Dube said Absa was still busy with due diligence to decide whether it will outsource staff.
Dube said the bank would have to consult with the union if it decides to move staff outside of the bank. ITWeb attempted repeatedly to get comment from Dube today to clarify the situation.
Reducing duplication
Absa said yesterday morning employees in its IT unit would have the opportunity to apply for positions across the group. The bank explained this was in line with its “programme of integration with the rest of Africa and the efficiencies that derive from this process”.
The bank added: “Through developments in technology and processes, we continuously seek to improve output, while reducing duplication.”
The staff who have been reassigned will be able to apply for suitable vacancies in the group by “accessing facilities at designated Absa placement centres”, during the three-month period, says Absa. It says it will consider these employees for “vacancies that need to be filled”.
“Absa remains committed to the well-being of all its employees and is offering the necessary support to all staff who are currently on reassignment,” says Absa, one of the largest retail banks in SA.
The bank explains that, as some roles are sensitive and it needs to protect the organisation and staff, “affected employees were asked to hand in all company equipment before leaving the Absa building”.
Absa, which employs 36 535 permanent staff, saw employee-related expenses increase by 9% in the year to December. However, 1 570 staff members left the company due to attrition and a “continued focus on automation and efficiency initiatives”, according to Absa's year-end results booklet.
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