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Union has plan to cushion Standard job cuts

Johannesburg - Trade union Solidarity has submitted a comprehensive social plan to Standard Bank Group [JSE:SBK] to not only cushion the effect of retrenchments at the financial institution, but also investigate all possibilities to ward off job cuts.

"While most South Africans are looking forward to a well-earned holiday this Christmas, employees of Standard Bank are uncertain whether they will be able to fill their Christmas stockings this year," Solidarity deputy general secretary Gideon du Plessis said in a statement on Monday.

Last week the country's largest bank warned staff of possible retrenchments, particularly at its head office in Johannesburg.

Solidarity said its plan was also aimed at minimising the effect of lay-offs on employees.

"If the plan we submitted to Standard Bank is followed, the potential influence of the retrenchments crisis on the bank's employees could be substantially mitigated."

Standard Bank, however, could not immediately comment.

Solidarity's four step action plan for Standard Bank included proactive measures to prevent retrenchments.

"Solidarity maintains that job security should be protected at all cost and that any form of retrenchment should be prevented.

"This can be done by establishing a forum (consisting of representatives of the employer as well as trade unions) that will investigate any problems influencing job security in advance, with a long-term view.

"Regular skills surveys should also be conducted with skills development in mind."

Solidarity also proposed empowerment programmes, the establishment of opportunity centres responsible for training, placing and counselling employees and the appointment of social plan coordinators.

Secondly, the union insisted that retrenchment processes be handled in accordance with legal requirements and fair retrenchment procedures.

"Acts and regulations that have to be complied with include Section 189 of the Labour Relations Act, the social plan as explained by the department of labour, collective bargaining agreements with trade unions concerned, company procedures, and the employees' service agreements."

The trade union said the correct handling of communication and the availability of information would facilitate the process.

Thirdly, the union said alternatives to retrenchments had to be considered.

"All other options in the operational activities of the company should be considered and personnel planning also has to be done.

"Options such as cutting bonuses or negotiating about salaries should be considered as well as the downscaling of temporary and contract workers."

Fourthly, Solidarity said, if retrenchments were ultimately unavoidable, employers should offer more favourable retrenchment packages, investigate the training needs of employees, promote entrepreneurship and business skills, and try to delay retrenchments.

"Solidarity emphasises that employers should meet the fixed payout period of retrenchment packages, offer support with regard to unemployment insurance payouts, and make counselling available to employees."

In addition, retrenched employees should have the first option to apply for vacancies if any should become available, the union said.

Solidarity and Standard Bank are to meet on Tuesday to discuss the planned retrenchments.

This followed Solidarity's demands contained in a letter to the executive directors of Standard Bank last week that they lay their cards on the table regarding the planned retrenchments, the union said.
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