Big four bank Absa's current retrenchment process does not amount to “mass” job cuts, according to the bank.
This week, ITWeb reported that Absa had embarked on a retrenchment exercise and as many as 140 IT employees will be out of a job in just under a month, after the bank's human resources department sent out retrenchment e-mails.
Absa has now reacted to a statement issued by trade union Solidarity. The union says some staff members in Absa's IT unit were notified by e-mail that they will be retrenched on 9 June.
“This came in spite of Absa's continued denial that it is carrying out retrenchments. At least 140 employees in the IT department will lose their jobs,” says the union.
Absa says that since 2009, it has consistently indicated it was endeavouring to improve efficiencies and effectiveness, while reducing duplication.
“Where the reorganisation of particular business units is necessary, we aim to minimise the impact on our people through effective processes to find suitable placement for these employees. In exceptional cases, this may not be possible.”
Absa says in February this year, some employees in its IT business were placed on a three-month reassignment process, as per its agreement with recognised labour union Sasbo.
“During the three-month reassignment period, employees were provided with the necessary support to apply for any internal vacancies that are available across other parts of our business. A dedicated Africa Technology reassignment centre was set up to assist these employees with finding employment elsewhere in the Absa businesses.”
However, the bank says all options were exhausted and discussions have started with individuals that “either opted not to take up available options within the business, or simply could not be placed because their skills did not match available opportunities”.
Absa says it is now “managing their exit out of the organisation”, but that this does not, in any way, reflect a mass retrenchment exercise.
Deputy general-secretary of Solidarity Dirk Hermann says “we are astounded by the callousness with which Absa is carrying out the process”. He alleges that the bank is forcing staff to quit, which will leave them without access to retrenchment packages.
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