Over 1 200 jobs on the line as African Bank begins 189 consultation process

CAPE TOWN – African Bank announced on Tuesday that it had commenced a consultation process with its recognised union, Sasbo, as prescribed in terms of section 189(3) read together with section 189A of the Labour Relations Act, Act 66 of 1995.

According to a statement, it is anticipated that 1 269 employees of the current 3 728 total will be affected. The bank said it anticipated a job loss ratio of about 25 percent of the number affected. In the preceding 12 months, African Bank has not retrenched any employees for operational requirements.

Chief executive of African Bank Basani Maluleke said they had been deliberate in reducing costs in all areas of the business. “The undertaking of a consultation process with our employees is the last resort to further reduce costs.

“Our intention throughout the process will be to consider appropriate measures to avoid and minimise potential job terminations. During these unsettling times, we will continue to deliver the exceptional service to which our customers have become accustomed.”

The Covid-19 outbreak and the associated protracted lockdown intensified the dire state of the economy. The bank said given the financial pressure faced by our customers it had recorded a reduction in sales as well as collections, which created excess capacity across the different business units.