Finance Union, African Bank come to understanding

Sasbo has signed a memorandum of understanding with the curator of African Bank which would ensure job protection, the finance union said on Thursday.

"This is a very positive development as the working environment of our members have, over the last number of months, been characterised by low staff morale [and] uncertainty and insecurities about possible job losses... all of which have made our members feel very despondent and demotivated," national secretary Myan Soobramoney said in a statement.

"We acknowledge that all is not well and that the bank is perhaps not out of the woods yet, but there are signs that the bank is stabilising and improving its position."

Soobramoney said the union hoped the memorandum of understanding would bring relief to its members and allay fears.

The bank was placed under curatorship in August.

A consortium involving major banks had committed to underwrite a R10 billion capital raising and would engage with shareholders and other participants, SARB governor Gill Marcus said at the time.

African Bank's shares plummeted after it warned of massive losses and said it needed about R8.5bn in new capital.

Marcus said African Bank served 3.2 million people.

 

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