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Johannesburg - South Africa's largest and most profitable banking group on Friday faced a tirade of abuse across social media channels, after it announced it would slash about 1 500 jobs locally and retrench about 600 contractors.
The bank, which delivered an 11% increase in headline earnings to R5.9bn when it reported interim results for the first six months of the year in August 2010, has told staff that job cuts would be necessary in South Africa and London as the economic recovery remained uncertain.
The group was slammed by trade union Solidarity, which says it was not properly consulted by the bank.
"The Labour Relations Act clearly stipulates that an employer that is planning retrenchments must consult with all the unions involved, regardless of the number of members the union has," said Gideon du Plessis, deputy general secretary of Solidarity.
Financial sector trade union Sasbo, which claims to represent about 15 000 Standard Bank employees, was equally scathing.
"We are astonished and extremely disappointed by what Standard Bank says is the number of employees it wants to dismiss in order to reduce its costs and consequently increase its profits," said Sasbo assistant general secretary Eugene Ebersohn.
The bank has indicated that it would like to have the retrenchments finalised by the end of November 2010.
Many of those in the firing line face a double whammy of sorts as they enjoy preferential homeloan pricing through the bank. This will lapse if they are retrenched.
South African consumers have become increasingly vocal at airing displeasure of heavy-handed corporate activity in social networks.
Banking group Absa faced a barrage of criticism on its Facebook page for comments its management made on the selection of players in the Currie Cup rugby tournament.
Retailer Woolworths this week bowed to pressure on social media forums, after it had earlier announced that it would remove Christian magazines from its stores.
Biting comments
Standard Bank was roundly criticised for its sponsorship of cricket and was asked whether the job cuts were driven by the involvement of its Chinese shareholder ICBC, which owns 20% of Standard Bank.
The comments were biting.
One said: "It's just business right? But then where does a bank like Standard, which is growing in the continent, for once not allow the margins to be down and keep its staff. It is not like they are a commodity that needs to be sold. They don't sell burgers, they sell money and money makes money. It is irresponsible of them to do this. Where will those retrenched people go? Have they no heart?"
Some were more measured. A Standard Bank staffer commented on the group's Facebook page: "We all at Standard Bank felt it this morning when Jacko Maree, our CEO, became emotional about the retrenchments. It just shows that the top leadership really feel for their staff. Proudly a Standard Banker!!!"
For those with a sense of humour who are more au fait with social media channel FourSquare, a handful of participants set their locations to "Retrenchment meeting at Standard Bank HQ".
While most Standard Bank employees cut a downcast figure online, one person who remained cheerful was the operator of the Standard Bank Twitter feed who encouraged people to get their matric results online, have their photo taken at the Brooklyn Mall and open a MyCard credit card account.
By mid-afternoon on Friday, Standard was trading down 121c (1.1%) at R105.94.
- Fin24
* The writer holds ordinary and preference shares in Standard Bank.
The bank, which delivered an 11% increase in headline earnings to R5.9bn when it reported interim results for the first six months of the year in August 2010, has told staff that job cuts would be necessary in South Africa and London as the economic recovery remained uncertain.
The group was slammed by trade union Solidarity, which says it was not properly consulted by the bank.
"The Labour Relations Act clearly stipulates that an employer that is planning retrenchments must consult with all the unions involved, regardless of the number of members the union has," said Gideon du Plessis, deputy general secretary of Solidarity.
Financial sector trade union Sasbo, which claims to represent about 15 000 Standard Bank employees, was equally scathing.
"We are astonished and extremely disappointed by what Standard Bank says is the number of employees it wants to dismiss in order to reduce its costs and consequently increase its profits," said Sasbo assistant general secretary Eugene Ebersohn.
The bank has indicated that it would like to have the retrenchments finalised by the end of November 2010.
Many of those in the firing line face a double whammy of sorts as they enjoy preferential homeloan pricing through the bank. This will lapse if they are retrenched.
South African consumers have become increasingly vocal at airing displeasure of heavy-handed corporate activity in social networks.
Banking group Absa faced a barrage of criticism on its Facebook page for comments its management made on the selection of players in the Currie Cup rugby tournament.
Retailer Woolworths this week bowed to pressure on social media forums, after it had earlier announced that it would remove Christian magazines from its stores.
Biting comments
Standard Bank was roundly criticised for its sponsorship of cricket and was asked whether the job cuts were driven by the involvement of its Chinese shareholder ICBC, which owns 20% of Standard Bank.
The comments were biting.
One said: "It's just business right? But then where does a bank like Standard, which is growing in the continent, for once not allow the margins to be down and keep its staff. It is not like they are a commodity that needs to be sold. They don't sell burgers, they sell money and money makes money. It is irresponsible of them to do this. Where will those retrenched people go? Have they no heart?"
Some were more measured. A Standard Bank staffer commented on the group's Facebook page: "We all at Standard Bank felt it this morning when Jacko Maree, our CEO, became emotional about the retrenchments. It just shows that the top leadership really feel for their staff. Proudly a Standard Banker!!!"
For those with a sense of humour who are more au fait with social media channel FourSquare, a handful of participants set their locations to "Retrenchment meeting at Standard Bank HQ".
While most Standard Bank employees cut a downcast figure online, one person who remained cheerful was the operator of the Standard Bank Twitter feed who encouraged people to get their matric results online, have their photo taken at the Brooklyn Mall and open a MyCard credit card account.
By mid-afternoon on Friday, Standard was trading down 121c (1.1%) at R105.94.
- Fin24
* The writer holds ordinary and preference shares in Standard Bank.
