Re­trench­ments no longer nec­es­sary

The Star Early Edition - - COMPANIES -

AFRICAN Bank an­nounced yes­ter­day that it has de­cided to dis­con­tinue the Sec­tion 189A con­sul­ta­tion process be­cause of the re­sponse it has re­ceived to its of­fer of vol­un­tary sev­er­ance and re­tire­ment pack­ages, which are enough to stave off planned re­trench­ments. The bank said that it had reached the agree­ment with the South African So­ci­ety of Bank Of­fi­cials (Sasbo), the union that is rep­re­sent­ing work­ers who were to be re­trenched. The me­di­a­tion con­sul­ta­tion en­tailed of­fer­ing vol­un­tary sev­er­ance and re­tire­ment pack­ages to staff. In a bid to cut costs the African Bank in May is­sued no­tices to its staff about its re­struc­tur­ing plan that would have seen as many as 652 em­ploy­ees re­trenched – about a sixth of the staff com­ple­ment of 4 075. How­ever, yes­ter­day African Bank chief ex­ec­u­tive, Brian Ri­ley, said as a re­sult of the high num­ber of work­ers ac­cept­ing vol­un­tary sev­er­ance and re­tire­ment pack­ages, the bank no longer needed to con­tinue with the re­trench­ment phase. “The nec­es­sary re­duc­tion in staff num­bers to achieve the ap­pro­pri­ate cost base will be con­cluded through a vol­un­tary process,” Ri­ley said. “Given this, we are pleased that we are able to avoid re­trench­ments. This out­come en­ables us to con­tinue build­ing a sus­tain­able busi­ness over the long term.” – ANA


African Bank’s of­fer of vol­un­tary sev­er­ance and re­tire­ment pack­ages was taken up in large num­bers.

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