Solidarity questions Standard Bank's managerial expertise, selection criteria and timing; banking giant expected to respond by tomorrow

The trade union Solidarity has demanded that Standard Bank explain why a natural outflow of staff is not considered an alternative to the planned retrenchments, following an analysis of the bank's financial results for the first half of the year. The trade union also requested that the bank set out the cutbacks that had been implemented in an effort to reduce the number of retrenchments. 

Solidarity yesterday directed a detailed letter to the bank, in which the trade union requests clarity on various aspects regarding Standard Bank's financial position, information the bank has released regarding the retrenchments so far, as well as information regarding certain managerial decisions.

The trade union 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. According to Marius Croucamp, Solidarity spokesperson, it is 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. 

"The trade union has questions about, among other things, the 23% increase in the so called ‘variable staffing costs' in the first half of this year," explained Croucamp. "In addition, the trade union has questions about the criteria the bank uses for identifying personnel who will be retrenched. These criteria must, according to legislation, be agreed on during the consultation process, but the bank has allegedly started to apply certain criteria that have not been made known to date," he added.

According to Croucamp, the trade union is convinced that the bank is not in a financial predicament and that the retrenchments are exclusively aimed at creating more value for the shareholders. "Although the bank's profit dropped by 10%, the profit of R5,449 billion shows that the bank is definitely not in a financial predicament," explained Croucamp. "It is clear that the value for the shareholders is given priority over the interests of the employees who create the value for the shareholders in the first place," said Croucamp.

Standard Bank initially refused to consult with Solidarity, but relented after the trade union threatened to take legal action. The bank has to respond to the trade union's questions by tomorrow, before the next consultation meeting scheduled for Monday, 22 November.

"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 added.

Statement issued by Marius Croucamp, Spokesperson: Solidarity, November 16 2010

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