Union to fight bank lay-offs

TRADE unions have indicated they are prepared to fight the planned retrenchments at South Africa's largest banking group, Standard Bank.

The bank disclosed on Thursday that up to 1500 jobs could be made redundant within the group.

In a note to staff, the group said about 1200 permanent positions in South Africa were likely to become redundant. The group is also proposing that about 300 positions in London be made redundant.

In addition, about 600 contractors' roles will be terminated.

Standard Bank group chief executive Jacko Maree and Standard Bank South Africa chief executive Sim Tshabalala said the group had recently said that as it reviewed its budgets for 2011 all indications were that the revenue pressure, which was evident in the first six months of 2010, would continue during next year.

However, unions are threatening to fight the lay-offs. Trade union Solidarity said on Friday that it could possibly approach the Labour Court to halt Standard Bank's retrenchment process if the banking giant does not immediately send a section 189 notice to the trade union.

At a meeting with Solidarity last week, the bank undertook to send a written notice containing all the information about the planned retrenchments to the trade union. However, Solidarity has still not received any information.

Meanwhile, Solidarity is still questioning Standard Bank's rationale for the retrenchments. The banking group spends about R350million a year on foreign contractors, and foreigners receive almost double the remuneration that local employees with the same job description receive.

It is also demanding that Standard Bank should indicate what steps have been taken to avoid retrenchments, what criteria will be followed to identify employees for retrenchment and how the bank will assist employees.