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Union says Absa retrenches staff by email

By Sowetan LIVE | May 11, 2012 | COMMENTS [ 30 ]

The Solidarity trade union says employees of Absa were notified by e-mail this week that they will be retrenched on 9 June. This comes 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, Solidarity said in a statement.

The trade union says it is in possession of evidence that other departments will also be affected by retrenchments, but Absa is keeping mum on how many people will be retrenched.

"We are astounded by the callousness with which Absa is carrying out the process.   

"First, employees were forced to pack up their belongings and escorted out of Absa's offices. They were sent home for three months for so-called gardening leave and were told that other positions would be sought for them in the company.

"Now they are getting retrenched by e-mail," Dirk Hermann, Deputy General Secretary of Solidarity, said in the statement.   

In the letter to the employees, they are requested to complete a form whereby they resign from Absa, the union says. The form's heading reads: "Notice of termination of service". Employees have to complete the date of their resignation on the form.   

"If employees complete and sign this form, then it is no longer a case of retrenchment, but of resignation. The employees will therefore not be entitled to severance pay or unemployment insurance.  

"From a legal perspective the implication is that someone who worked for Absa for 40 years will be walking away without a cent," Hermann said.

Solidarity called on employees not to complete the form.   

Time-line of events as provided by Solidarity:

- On 7 May 2012 at 15:20, employees received a letter by e-mail informing them that attempts to place them in other positions had been unsuccessful.

- On 8 May they were requested to complete forms to resign from their medical aid and pension and a form to resign from the company in order to ensure a seamless exit from the bank. They must also hand in all property of the employer that may still be in their possession.

"In effect, the employees find themselves in a position where 'today' they are told that 'tomorrow' they have to say 'goodbye'," Hermann said.

In the letter's closing, the employees are thanked for their valuable contribution in Absa and wished success for the future, Solidarity says.

COMMENTS [ 30 ]

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the CEO has pocketed mR20 bonus, and its not even 140, the corret figure is 1200, maybe +140, and most of them of colour! and this company was offered a BEE award! how pathetic, I clossed all my dealings with them!

May 11, 2012 12:21 | 0 replies

@ Mckena steve is FNB not Absa dear

May 11, 2012 2:9 | 0 replies

maybe its bcoz the gorverment cancelled the deal they had when they were renewing the sassa social grants cards

May 11, 2012 2:23 | 0 replies

manzotho
ag shame the joke went over your head. Mckena is talking about the advert on radio.

May 11, 2012 2:24 | 0 replies

My friends are unemplyed now, thanks to ABSA.....Thats why i'll never bank with them

May 11, 2012 2:28 | 0 replies

manzotho
I'm really sorry 4 those who lost their jobs Absa is angry bcoz of what barclays did they will b controlling from now on coz dey have 51% and Absa 49% lot of ppl will kiss their jobs gud bye especially de management, no more mabhulu now english all de way.
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Friday is not good for you. Barclays has been having 51% ever since but there was a cool off agreement i.e Barclays guaranteed no retrechments for a certain period. The unfortunate part some jobs are no longer relevant in these days of technology eg a guy or lady who was doing munual filling, now banks have upgraded to computer filling, what will that guy do? A guy who was controlling paper signatures, all of those are scanned in the computer now. Most companies also outsource IT servers because it is cheaper to do so.

May 11, 2012 2:32 | 0 replies

Sad story

May 11, 2012 2:33 | 0 replies

@Marymenow do u read de circulars properly & watch broadcasts if u do refer 2 what Deon said. & @ Marymenow steve is doing de ad 4 Fnb I think dats what I said.

May 11, 2012 2:43 | 0 replies

manzotho
i worked for ABSA for 8 years so i am fully aware of the Barclays transaction. The perception about the Steve is some one who is working for ABSA, but losing clients to FNB, its a joke.

You said "@ Mckena steve is FNB not Absa dear"

May 11, 2012 3:4 | 0 replies

How on earth a u aware of what's going-on @ Absa now if u used 2 work de 1901, & a u really gonna go on with dis steve thing? Coz u clearly not clued up about de ad I suggetst listen ok

May 11, 2012 3:22 | 0 replies

Fancylibra, i like thy suggestion is very powerful and it makes a sense. yiyo kanye leyo, wena wakithi.

May 11, 2012 3:49 | 0 replies