Standard, Solidarity tensions rise

Johannesburg - Standard Bank Group [JSE:SBK] , which is in the throes of a retrenchment process, said on Tuesday it was bitterly disappointed at the “bad faith” and “bad manners” displayed by trade union Solidarity which it accused of taking questions to the media without giving it  an opportunity to respond.

The bank said it engaged with Solidarity in good faith but “unfortunately Solidarity sees fit to run to the media to sensationalise a very serious and critical issue facing their members - the contemplated dismissals based on operational requirements”.

It said it had conducted the process with the “utmost civility, respect and professionalism” and had hoped that Solidarity would reciprocate.
 
Standard Bank and Solidarity agreed on a process of consultation.

The union submitted questions to Standard Bank on November 15, 2010 and Standard has to respond by November 17.
 
Standard Bank said it would deal with Solidarity's claims in the appropriate forums.

Solidarity also demanded answers from Standard Bank on Tuesday.

It said that Standard Bank should explain why a natural outflow of staff was not considered an alternative to the planned retrenchments.

This followed an analysis of the bank's financial results for the first half of the year.

Solidarity also requested that the bank set out the cutbacks that had been implemented in an effort to reduce the number of retrenchments.

Standard Bank recently announced that it would retrench 1 300 people, including some at management level.
 
The union on Monday sent a letter to the bank requesting clarity on aspects of Standard Bank's financial position and information on the retrenchments so far and on certain managerial decisions.

It blamed the high proportion of managers in relation to staff on poor executive management and called on the bank to explain the consequences for the executive managers responsible for creating the excessive posts.

Solidarity spokesperson Marius Croucamp said it was unacceptable that the executive management, who are responsible for the excessive posts, will still receive millions of rands in bonuses at the end of the year.
 
Standard Bank initially refused to consult with Solidarity, but relented after the trade union threatened to take legal action.

“Solidarity's legal documents have been drawn up,” said Croucamp.

“If it appears at any time that the bank does not consult with the trade union in good faith as determined by law, we will not hesitate to take further legal steps,” he said.