Big four bank Absa says there will not be a further round of restructuring this year.
About 40 professionals from its IT unit are currently on gardening leave, after the bank earlier this year redeployed about 1 600 staff in its group IT division.
Staff members 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.
In May, the bank issued letters of retrenchment to about 140 staff members, telling them 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.
However, the bank then withdrew the letters and agreed to continue discussions with finance union Sasbo. Sasbo currently represents about 22 000 of Absa's around 39 000 staff members.
Sasbo assistant general secretary Comfort Duma says about 100 affected staff members have been placed in alternative positions. He welcomes the news that there will be no further retrenchments this year, apart from what is already under way.
In response to questions around where the process is and whether any staff will be retrenched out of the 140, Absa says its restructuring process is not simply about reducing numbers, but rather about optimising the bank's operations and its service to customers.
“We have consulted extensively with our recognised union, Sasbo, and demonstrated our commitment to ensuring that we minimise redundancies. It is important to note that we have provided an undertaking to Sasbo that, apart from the restructuring initiatives that we have already begun consultations on, there will be no further restructurings in 2012,” says Absa.
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