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Absa puts IT staff on gardening leave

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 17 Feb 2012

Almost 200 Absa IT employees are sitting at home on the bank's payroll, while they await the outcome of the company's reassignment process.

While the bank officially denies it is involved in a retrenchment process, the affected staff have been informed through internal communication that they are not guaranteed jobs and have been told they may be out of work if they cannot find a suitable alternative position within the Absa and Barclays group.

Finance union Sasbo has threatened Absa with war if any staff member in the company's IT unit ends up retrenched at the end of the three-month “reassignment” period.

Absa is majority owned by UK-based Barclays. In the year to December, it turned over R45.8 billion, and reported R9.7 billion in headline earnings.

In an ongoing efficiency drive, the bank has told all 1 600 IT staff members to reapply for their positions, and select two other job choices. Yet, a labour law expert says companies, as a general principle, cannot ask staff to reapply for their position, or one that is substantially similar.

Twiddling thumbs

The first part of the reorganisation process was completed last Friday, and unsuccessful staff members were given letters, and escorted out of the building by security, after being told to pack up their desks.

Absa personnel, who spoke to ITWeb on condition of anonymity for fear of losing their jobs, say the exercise affected between 160 and 180 people. Absa declined to comment further on the matter.

The letters handed out to unsuccessful staff, a copy of which is in ITWeb's possession, states the reassigned staff members would not have to go to work except to “participate in arranged reassignment activity”, or unless management specifically requests their presence.

Absa's letter adds that the affected staff will have access to the Internet and intranet to search for alternative employment within the group, and they will be placed on a “reassignment list” on which reference to vacancies within the company will be made.

“Should you not be able to secure a suitable alternative position in the Absa or Barclays groups during the reassignment period, you may be retrenched in line with the Absa reassignment and retrenchment policy,” it states.

But employees say there are no positions available, and that the number of affected staff outnumbers possible vacancies. They also allege the company has not dealt with the matter properly and that they have been kept in the dark.

Fighting back

Barney Jordaan, a labour law practitioner with Maserumule Consulting and a professor at the University of Stellenbosch's Business School, says he “gets a tingle if people talk about reapplying”.

On general principles, staff cannot be asked to reapply for their jobs, or ones that are substantially similar, says Jordaan. In addition, they cannot be made redundant if they do not re-apply for their old job.

Jordaan adds that if there are fewer new jobs available than old positions, that is a “classic retrenchment situation”. He adds that even if the number of positions is equal, companies still have to do through redundancy procedures in case employees are not successful in applying for new posts.

Sasbo assistant general secretary Comfort Duma says the union will “fight very hard should any members be retrenched after three months”. He says the union will negotiate with the bank, and this protection will extend to all affected staff.

Duma says the union will not allow the bank to retrench staff. “We mean business to ensure that the interests of our members are protected.”

Absa IT staff that have retained their jobs have started looking outside the company, says an employee. Careerweb, ITWeb's sister company, has already received more than 75 applications for other positions within the sector.

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