How withholding of banking services impacts workers in South Africa

RECENTLY, some tennis players from Russia were prevented by Britain from taking part in Wimbledon 2022.

Very quickly, many tennis players condemned the hypocrisy as innocent citizens who had no qualms with Britain were being punished for nothing but being Russian citizens. Israel has been occupying Palestinian land for nearly a century, and yet, no condemnation or victimisation of their citizens.

Many commentators clearly saw the moral dilemma if innocent citizens are to be punished for the actions of their government that they have nothing to do with.

Similarly, when Russia was removed from the SWIFT system for interbank transactions, many South African farmers suffered great losses as some of their produce were already on the way to Russia per ship, and there was no way they could get payment due to this action and others have already suffered losses running in the millions of rand. This action alone impacts not only on the farmers profitability, but also directly on their workers, who will either suffer reduced income for ace unemployment. This action did not harm the government of Russia as much as here in South Africa.

According to our Constitution under Section 23: Labour Relations, everyone has the right to fair labour practices; every worker has the right to form and join a trade union and take part in the union’s activities; every worker has the right to strike. This is expanded under the Labour Relations Act, which guarantees a minimum wage.

When a company is punished by the banks withholding banking services, we find it impinges on the workers right to a minimum wage. It is no use that he gets paid a minimum wage, but he has no access to that minimum wage. All payments of firms, even small ones, are all done mostly to comply with legislative requirements such as tax.

With holding of banking services also impacts the states ability to collect tax , VAT, UIF payments etc... from an impacted company.

The world is quick to denounce collective punishment in the occupied West Bank as well as incidences they are now alleging in Ukraine.

But when a firm has its banking services withheld by a bank, it is nothing short of collective punishment, where innocent workers are made to suffer. A worker who cannot get his salary is not able to buy bread or nappies, or baby formula for his child.

This infringes on the dignity of the worker and his family, who now has to beg from others. The right to dignity is a core value on which our Constitution is based and the same rights that Judge Hlophe used in his case against the constitutional judges.

For those who think this is a Sekunjalo problem, please note that their rights are also our rights If banks can act with impunity in violating the constitutional rights of others tomorrow, they can do it to us.

Apartheid South Africa was NEVER removed from the SWIFT banking system from its start because some argued that the innocent black citizens would suffer most which is true but why the double standards now? Our workers are still black.

With black, we mean disadvantaged, so why not the outrage now? Their banking rights are also our banking rights. I trust that our courts will see that banking rights are intrinsically linked to the laws that govern our right to a fair wage and our rights to dignity in a free democratic South Africa.

MASIBONGWE SIHLAHLA | Founder and of Concerned Young People’s Forum