Big four bank Absa has withdrawn last week's e-mailed letters of retrenchment to about 140 of its IT staff, but unions warn the tactical retreat is not the end of the war.
Absa's retrenchment process, which it has consistently denied is a mass job-cutting exercise, follows a move earlier this year in which the bank redeployed about 1 600 staff members in its group IT division.
Staff were told to reapply for jobs within the group, but about 200 unsuccessful employees were marched off the premises in February, carrying their possessions in boxes. At the end of March, about 145 of Absa's IT staff members were still on gardening leave, while the bank attempted to assist them in finding new jobs.
Last week, the bulk of the people on gardening leave were told they would be out of work on 9 June. They were given a day to fill in forms and had to return all Absa's possessions to the bank.
Temporary reprieve
Absa has now withdrawn these letters and is set to meet with finance union Sasbo in the next few days to work out a way forward. However, it appears the bank has only temporarily halted the process because of a timing issue.
Absa spokesman John Dludlu says, after consultations with Sasbo, the only recognised union at the bank, it has “temporarily withdrawn notices of retrenchment to some impacted employees in its IT business unit”.
Dludlu adds: “Absa regrets that the timing of the letters was asynchronous with the timetable agreed with Sasbo and has implemented measures to ensure that due process is followed. Absa has undertaken to continue its open dialogue with Sasbo to finalise the next steps in this process.”
Fighting on
Sasbo assistant general secretary, Comfort Duma, says the withdrawal of notices follows an urgent meeting on Saturday. Duma says the union expressed its outrage that the bank unilaterally issued notices and placed it on terms to withdraw the letters by noon yesterday.
In the letters, a copy of which is in ITWeb's possession, the bank refers to “consultations held with you and Sasbo”. However, it appears that final retrenchment talks were never held.
Duma says the bank must now go back through a reassignment process and endeavour to place affected staff. He says Absa needs to go back to square one. “We are nowhere near the end of the battle.”
Sasbo currently represents about 22 000 of Absa's around 39 000 staff members. Duma says the union will protect the interests of its members. He is optimistic that affected staff can be placed within the company.
Tactical move
Deputy secretary general of trade union Solidarity, Dirk Herman, says the temporary halt on retrenchments is a “tactical reprieve” for the trade unions although they have not “won the war yet”. He says Absa should back off on principle, because “the core of its process was rotten”.
“Absa's announcement that the notices will be withdrawn is a big step in the right direction and is in effect an admission of its unacceptable conduct.”
Herman says the additional time gives the union the opportunity to keep fighting Absa's process, which he suspects will continue in the second half of the year. Solidarity's sources indicate that more IT staff will be retrenched in 2012 as Absa seeks to trim its cost base.
Solidarity argues that the letters sent out, which had to be returned a day later, amounted to a resignation process.
“Employees who filled in and submitted the resignation form have resigned and will as a result not be entitled to severance pay or unemployment insurance. Solidarity, therefore, appealed to employees to not fill in the form and directed a stern letter to Absa regarding the form. From a legal perspective, the implication is that someone who worked for Absa for 40 years will walk away without a cent if he submits the resignation form,” says Herman.
Share