Standard disappoints Sasbo

Sasbo the finance union said it was "extremely disappointed" by the number of job cuts Standard Bank intends to make, in a statement.

"More than 1200 permanent employees (around four percent of the bank's total South African workforce) are faced with possible retrenchment early in the new year," Sasbo's assistant general secretary, Eugene Ebersohn said.

This followed consultations between Sasbo -- representing 15,400 members in Standard Bank -- and the company on Thursday.

Ebersohn said the "biggest difference" between Sasbo and the Standard Bank was whether it was in the best interests of society and the economy as a whole to cut jobs to increase value and profits for shareholders.

"We do not believe such an aggressive plan to retrench staff is in the interests of anyone."

Ebersohn said the number of international shareholders in the Standard Bank Group stood at 43 percent "and this makes one wonder how much value is placed on making shareholders happy versus what is good for South Africa, its economy and its people."

If the retrenchments took place, SA would also lose, in terms of personal income tax, in the region of R250 million per annum.

Ebersohn said Sasbo "wholeheartedly agreed" with the Governor of the Reserve Bank's views that unemployment was the biggest challenge facing the economy.

"We believe all citizens of this country, and this includes our large corporate citizens, should at this point in time, after the recession and moving, albeit slowly, into recovery, be looking at retaining and creating employment as opposed to increasing unemployment."

Ebersohn said many families now faced a very uncertain future going into what was supposed to be a happy and festive season.

"We deplore the fact that the bank is placing more profits before employee's job security and livelihoods."

Ebersohn said Sasbo was opposed to the dismissals and would leave no stone unturned in protecting its members' interests.

In a separate statement to its staff on Thursday, the Standard Bank said there would be limited redeployment opportunities for retrenched employees.

"All retrenched employees will be treated fairly and with dignity and will be provided with ongoing support in their search for alternative employment," the company said.