Job cuts at bank may be wider than management

"The biggest danger is that Standard Bank's retrenchments could lead to a chain reaction in the rest of the financial sector"

Standard Bank (SBK) could still not say how many of its 30,000 employees would be affected by planned retrenchments, the trade union Solidarity said on Wednesday.

The bank could also not provide a guarantee that the retrenchments would be limited to management level, the union said.

"However, Standard Bank has accepted the principles of Solidarity's social plan.

"Solidarity's four-step action plan contains guidelines and methods to avert retrenchment or, alternatively, to reduce retrenchment and to mitigate its impact," the union added.

Meanwhile, it said, Standard Bank has indicated that it is analysing all its business units in South Africa in order to identify areas where costs can be cut.

"It is important that Standard Bank complete its business analysis as quickly as possible and provide valid reasons for each individual affected by the planned retrenchments," according to Gideon du Plessis, deputy general secretary of Solidarity.

"It is also a cause for concern that the largest bank in Africa is now resorting to retrenchment shortly after the announcement of its favourable half-year results.

"The biggest danger is that Standard Bank's retrenchments could lead to a chain reaction in the rest of the financial sector," Du Plessis said.

He said Solidarity has already appointed a task team to get involved in the consultation process. This team consists of experienced negotiators who have already succeeded in averting several retrenchments at other companies.