SABC News - Sasbo opposes imminent retrenchments at African Bank:Tuesday 23 May 2017

Sasbo opposes imminent retrenchments at African Bank

Tuesday 23 May 2017 20:14

Naledi Matlapeng

About 652 people are likely to be retrenched at African bank.

About 652 people are likely to be retrenched at African bank. (SABC)

The South African Society of Bank Officials (Sasbo) says it is opposing the imminent retrenchments at African Bank and has applied to the Commission for Conciliation, Mediation and Arbitration (CCMA) for facilitation on the matter.

African Bank Investments (Abil) says there was a 32% increase in profit before tax, but foreign exchange losses of R500 million.

About 652 people are likely to be retrenched at African bank. Sasbo has threatened to embark on industrial action if Abil negotiates in bad faith.

Abil went out of curatorship in 2016 after the bad bank was replaced with the good bank.

Abil admits that the outlook related to its core business remains challenging in the current state of the economy.

Chief Economist Ian Cruickshanks says: "They have moved from a huge loss operation into a small profit making one and all those making operation would have led to oversight."

"That is why they are not going to need more people because they have got rid of the debtor of their loan book. "

African bank has a total workforce of almost 3900 and says it is in the process of engaging with various stake holders regarding the imminent possible retrenchments at the bank.

The first consultation between Abil and the unions will take place on May 30 at the CCMA.


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