Unions are outraged after big four bank Absa this week sent letters to 270 IT staff, who joined the company on Sunday, telling them that they had to reapply for their positions.
Solidarity is in talks with senior counsel over the best way to stop the bank from reassigning the staff members, while finance union Sasbo will tackle Absa over its latest move.
On Sunday, 270 former Gijima employees joined the bank after it took half of a R960 million desktop support deal in-house.
However, on Monday, the bank sent letters to the 270 former Gijima staff saying their positions had been affected as part of the implementation of its new Africa technology structure. The employees have been asked to select a new post within the new structure.
“During the process, we will endeavour to match and reposition you to the most appropriate role within the new Africa technology environment.'
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advice it receives from senior counsel.
Hermann says it is as if the bank is telling its new employees: “You're not welcome anymore.” He says: “It's absolutely shocking.”
The Gijima staff members were concerned before the move that they may end up without jobs, after Absa recently told about 1 600 staff members within its IT unit that they had to reapply for their jobs.
Almost 200 unsuccessful applicants were escorted off the premises in February and are at home, on the bank's payroll, while they hunt for new jobs through Absa's recruitment centre.
Court battle
Solidarity spokesman Marius Croucamp argues Absa expects to be in court very soon over the issue as the Labour Relations Act says people who transfer companies under a 197 cannot be dismissed and this is automatically unfair.
Croucamp says a section 197 transfer should result in the replacement employment contracts containing similar terms and conditions. He adds that the law specifies that a company cannot transfer staff through a 197 and then go through a restructuring process.
The letter also refers to a communication session held on Monday, as well as consultations with Sasbo during which “detailed rationale, guiding principles and new Africa technology structure were shared”.
However, Sasbo assistant general secretary Comfort Duma says there is “no way” the union would have agreed to the restructuring, and Sasbo will take the matter up with the bank and investigate the situation.
No comment
Absa declined to comment specifically, saying only: “Absa has already communicated extensively on this matter and has nothing further to add.”
The bank previously denied it is embarking on a mass retrenchment plan. The re-application for jobs is in line with its “programme of integration with the rest of Africa and the efficiencies that derive from this process,” it said in February.
Absa said the process “does not amount to retrenchments, as affected employees are given the opportunity to apply for positions across the group”. It said “through developments in technology and processes, we continuously seek to improve output while reducing duplication”.
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