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Solidarity today appealed to Standard Bank in a letter to lay its cards on the table regarding rumours of retrenchments at the bank. The trade union has learned that Standard Bank is planning to retrench a large number of employees in its IT division.

Johan Kruger, spokesperson for Solidarity, said the trade union learned from concerned members that rumours are going round at the bank that a few hundred employees could lose their jobs. “According to our members, several contractors’ contracts will not be renewed and section 189 notices are being prepared for permanent employees. It is rumoured that Standard Bank is going to outsource a large portion of its IT operations to India.” Solidarity appeals to Standard Bank in the letter to either admit that it is planning to carry out retrenchments, or quash the rumours.

Kruger said the emotional effect of retrenchments on employees was visible in retrenchments that have occurred at various large companies over the past year. “Standard Bank should avoid the mistakes made by many of these companies and be open and honest with its employees about planned retrenchments from the outset. Solidarity plans to be involved in the consultation process from the start to limit the retrenchments or their impact and to ensure that employees’ emotional wellbeing is taken into account.”

Solidarity has on previous occasions criticised the trend among companies to retrench highly skilled employees and to farm out work to foreign companies. “Companies retrench highly skilled employees for various reasons, including equal employment and profit-seeking, bringing about a skills shortage that, in turn, leads to work being contracted out, salaries being raised exorbitantly and skills being sourced abroad. These factors cause more South Africans to be retrenched and have a negative effect on the employment of local workers.”