SASBO notes with serious concern the recent media reports, including the publication of a News24 article, regarding African Bank’s contemplated Section 189A process and the potential impact on approximately 1,200 employees.
At the outset, SASBO wishes to place on record its strong objection to the premature publication of information relating to a matter that has not yet been meaningfully consulted upon with the recognised trade union. It is deeply disappointing that details of such a significant proposal found their way into the public domain before adequate engagement had taken place with the representatives of the employees whose livelihoods are at stake.
This morning, SASBO was scheduled to engage with African Bank management following the bank’s recently announced financial results, which reflected a loss of R624 million. The meeting had originally been scheduled two weeks ago but was postponed due to the unavailability of certain executives and was subsequently rescheduled for 08:00 this morning.
To SASBO’s astonishment, the very first slide of the bank’s presentation referred to a contemplated Section 189A consultation process. As the recognised union and representative of employees, SASBO immediately challenged management on why no prior engagement had taken place and why the union had not been afforded the basic courtesy of being informed before such a far-reaching proposal was presented. Despite our serious reservations regarding the manner in which the matter was introduced, SASBO remained in the meeting and listened to the bank’s presentation. Management indicated that it is contemplating embarking on a Section 189A process aimed at preserving capital and liquidity, restoring profitability, optimising approximately 90 branches, and redesigning its operating model. African Bank’s proposal could impact approximately 1,200 employees.
The bank further indicated that these measures are linked, among other things, to the need to strengthen governance and decision-making protocols in response to concerns raised by regulatory authorities. At this stage, management has described the proposal as being at a consultation stage only. SASBO and African Bank have agreed to meet again in the new week to commence formal engagements.
SASBO’s Position
SASBO views the manner in which this process has unfolded as unacceptable. Retrenchments are not merely a business exercise; they have profound consequences for workers, their families, and the communities that depend on their income. Any employer contemplating a process of this magnitude has a duty to engage openly, transparently, and respectfully with organised labour before information is released publicly.
SASBO does not support the premature publication of information concerning potential job losses when meaningful consultation and engagement have not yet taken place. Such actions create unnecessary anxiety, uncertainty, and distress among employees and undermine the very principles of consultation that are intended to guide a Section 189A process.
Furthermore, SASBO does not take kindly to any attempt by African Bank to repair the damage arising from its own financial, operational, and governance shortcomings by placing the burden on employees. Workers cannot be expected to carry the consequences of failures in internal governance, decision-making, strategy, or regulatory compliance. The employees who now face uncertainty did not create the circumstances that led to the bank’s current position, and they should not be treated as the solution to challenges that originate as a result of negligence by executives. SASBO will therefore approach the upcoming consultations with determination and vigilance. We will rigorously interrogate the rationale behind the proposed restructuring, demand full disclosure of all relevant information, challenge the necessity of any proposed job losses, and insist that all reasonable alternatives to retrenchment are thoroughly explored before any consideration is given to dismissals.
Our priority remains the protection of jobs, the defence of members’ rights, and the preservation of the dignity and livelihoods of the workers who have contributed to the success and sustainability of African Bank over many years. African Bank must understand that SASBO will not support any process that seeks to make employees pay for management failures. The bank must first demonstrate that every possible alternative has been exhausted and that accountability for its current challenges is not unfairly shifted onto the shoulders of hardworking employees.
SASBO remains resolute: workers must not become the casualties of corporate governance failures and strategic missteps for which they bear no responsibility.
Issued by the General Secretary of Sasbo