The response follows African Bank’s announcement that it has begun formal consultations with the South African Society of Bank Officials (SASBO) over a restructuring process that could result in the closure of 90 branches and the loss of approximately 1 200 jobs.
African Bank said the proposed restructuring is aimed at reducing costs and improving operational efficiency as the banking sector continues to adapt to changing customer behaviour and increased digitalisation.
COSATU National Spokesperson Zanele Sabela said the labour federation would work closely with SASBO to protect affected jobs. “I mean, we all know where our unemployment rate is sitting at 43.7% currently. We just can’t lose any jobs and so as COSATU we will do our utmost to support our affiliates SASBO to make sure that those jobs are saved,” Sabela said.
Sabela warned that the impact of the proposed retrenchments would extend far beyond the employees directly affected. “On average, one job supports about seven people and so when you look at that, you see how devastating it will be to lose those 1 200 jobs and therefore, we cannot do that. We will not allow that to happen,” Sabela said.
The proposed retrenchments come at a time when SA continues to grapple with high unemployment and sluggish economic growth. Labour unions have repeatedly argued that large-scale job cuts worsen poverty and place additional pressure on households already struggling with the rising cost of living.
–SABC/ChannelAfrica–
