DUE TO high numbers of workers accepting voluntary and retirement packages, African Bank will no longer go the retrenchment route.
African Bank chief executive, Brian Riley, said as a result of the high number of workers accepting voluntary severance and retirement packages, the bank no longer needed to continue with the retrenchment phase.
“The necessary reduction in staff numbers to achieve the appropriate cost base will be concluded through a voluntary process,” Riley said.
“Given this, we are pleased that we are able to avoid retrenchments. This outcome enables us to continue building a sustainable business over the long term.”
African Bank in May this year, issued notices to its staff about its restructuring plan that would have seen as many as 652 employees retrenched.
The bank said that it had reached the agreement with the South African Society of Bank Officials (Sasbo), the union that is representing workers who were to be retrenched.
The mediation consultation entailed offering voluntary severance and retirement packages to staff.