SEVERANCE PACKAGES
African Bank calls off plan to retrench employees
The bank had proposed cutting 650 of nearly 4,100 jobs following a decline in loan volumes, which Sasbo resisted
African Bank has halted proposed retrenchments after being snowed under by applications for voluntary severance and early retirement packages, CEO Brian Riley said on Thursday. In a bid to reach a sustainable cost base needed for its long-term strategy — including expanding to retail banking – the lender initiated consultations facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) with the South African Society of Bank Officials (Sasbo) in May, when it offered the packages before moving on to retrenchments. African Bank proposed cutting 650 of nearly 4,100 jobs following a decline in loan volumes, which Sasbo resisted. The two parties abandoned consultations this week after African Bank received a high number of applications. "The company is still in the process of evaluating some of the applications for the voluntary severance and retirement offer," Riley said. "We are already confident, however, that we have sufficient applications for the voluntary seve...
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