Union claims Absa will retrench 500 workers

ABSA bank is retrenching staff, and 500 IT workers are expected to lose their jobs as a result, according to Solidarity spokesman Marius Croucamp.

He said the union had seen retrenchment letters and the bank was under pressure from owner Barclays to cut costs by up to 10%.

But Absa has denied any plans to retrench, saying staff had to reapply for jobs in a restructuring process.

"It must be noted that the process under way does not amount to mass retrenchments, as affected employees are given the opportunity to apply for positions across the group. We have also ensured that all interested parties, including finance union Sasbo, were fully consulted."

Sasbo spokesman Confort Dube said the bank was restructuring and no Sasbo members had reported being retrenched.