The Congress of South African Trade Unions (COSATU) stands squarely behind Sasbo as it pushes back on African Bank’s plan to retrench 1 200 workers and close 90 branches.

African Bank announced the plan to media on Thursday before properly engaging with its employees’ recognised representative – Sasbo.

Given our country’s sky-high unemployment rate of 43.7%, we cannot afford to lose a single job. COSATU will therefore do everything in its power to support Sasbo to ensure that every one of the1 200 jobs is saved. We cannot have a situation where workers shoulder the burden of management’s strategic blunders.

Over the last two years, African Bank has gone on an acquisition spree, bringing on board Ubank, Grindrod Bank, Sasfin Capital Equipment Finance and Commercial Property Finance businesses. Now, following a R624 million loss in the half year to March, it is apparent its acquisition strategy was not well thought out.

The mooted retrenchment will have a devastating impact on workers’ livelihoods and that of their families. COSATU and Sasbo would be remiss to let that happen.

The Federation calls on African Bank to engage in meaningfully consultation with Sasbo to find alternative cost-saving measures and totally avoid job losses. We urge the South African Reserve Bank as main shareholder and the Department of Employment and Labour to intervene and avert this looming disaster.

Issued by COSATU

Zanele Sabela (COSATU Spokesperson)

Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za