Stop the retrenchments @ Absa

**Citizen X** · 04-Apr-12, 01:58 PM

I actually feel very strongly about the ABSA retrenchments a close relative of mine works for ABSA and has to contend with this constant fear of being retrenched. I can attest to the fact that she has several university degrees and numerous years corporate experience and I sincerely hope that she will not be affected by this. It's a tough one, who gets to be given a place on the life boat while the Titanic is sinking? I'm sure all ABSA staff have valid reasons for not being retrenched! There were many reasons why I decided to study further and one of them was job security, I want to be in a field where I can earn my own income and not live in fear of retrenchment...

**adrianh** · 04-Apr-12, 02:04 PM

To be serious for a moment, it is terrible that big organizations are able to dump large numbers of people at will. Many people buy into the one company for life ideal only to find that at 45 they are retrenched and unemployable because all their knowledge is vested in a single companies systems.

**Just Gone** · 04-Apr-12, 02:59 PM

Sadly this is a window into our future. Fact is people cannot work there way up anymore. And again labour brokers are partly responsible for that as well. No permanent employees means no promotions or any advancement of any kind ever again.

ABSA became a clear example of this fact. They don't use labour brokers yet but I can see this happening as they can scale up and scale down at leisure and we will suffer for it. So one gets harsh and bitter but can you really blame anyone for the frustration?

Sorry but how are labout brokers "partly" responsible for retrenchements and why no promotions if you are working thro a labour broker ?? what utter crap ! Labour brokers staff get promoted all the time - I know of labour broker staff having worked for companies up to 10 years !!!

**Citizen X** · 04-Apr-12, 03:44 PM

It actually heart wrenching that a retrenchment can unravel your entire life for the worst! I don't think it will affect young single educated individuals as much as it would affect married persons with kids...

**Citizen X** · 04-Apr-12, 04:44 PM

I just watched the video in Blurocks first post! The one gentleman explains how empty boxes were already placed in the corridors and you were simply called in, told it was your time to go and perhaps more insulting they even helped you pack your box! This gentleman explains how he was escorted to his desk like a criminal i.e. maybe you'll steal something on your way out! So, yes, I've sent my letter of support and I think that Solidarity is doing a great job!

**tec0** · 04-Apr-12, 05:04 PM

Originally Posted by Kevinb

Sorry but how are labout brokers "partly" responsible for retrenchements and why no promotions if you are working thro a labour broker ?? what utter crap ! Labour brokers staff get promoted all the time - I know of labour broker staff having worked for companies up to 10 years !!!

I was trying to avoid this bickering but in truth no company can promote a person if they are not directly employed. Yes you can give them different responsibilities and a bit more money but as you yourself have pointed out if for any reason whatsoever that person can just as easily lose everything. So in reality it is not what you claim it to be.

Secondly let us look at the larger picture. Correct me if I am wrong but if an employee works for a ~~labour broker~~ they receive a payslip every month as this is good practice. Now with this payslip these individuals can go and make a loan at the bank because they have proof of employment and so on.

Now "IF" this person gives someone some trouble about something and they get replaced. That person is effectively not earning any more money and thanks to a bad name created by the parties responsible they may not get work for some time.

The loan itself becomes a direct loss to the bank. So the more times this happen the more bad investments for the bank and presto retrenchment closing of branches and all the bad stuff that goes with it.

If you still think this is utter nonsense then we agree to disagree. You have your reasons I have my own.

**tec0** · 04-Apr-12, 05:09 PM

Originally Posted by Vanash Naick

I just watched the video in Blurocks first post! The one gentleman explains how empty boxes were already placed in the corridors and you were simply called in, told it was your time to go and perhaps more insulting they even helped you pack your box! This gentleman explains how he was escorted to his desk like a criminal i.e. maybe you'll steal something on your way out! So, yes, I've sent my letter of support and I think that Solidarity is doing a great job!

Fear not ABSA will lose a lot of customers very soon I hope a lot of people will be moving there accounts very soon.

**adrianh** · 04-Apr-12, 10:02 PM

I can't see ABSA losing lots of customers over this, it's become a way of life, companies grow and companies shrink. It's in the media because of the involvement of the unions. I worked for a large fruit exporter a couple of years ago that merged with another. People were retrenched every year for 3 years straight as duplicate functions within the merged company were streamlined. I worked with a large financial group in Namibia who effectively outsourced their IT infrastucture by creating an IT company and combining the IT infrastructures from the various companies into one...a lot of blood flowed as people scattered. I think that ABSA would spin it by saying that they either have to streamline their operations and lower their internal costs or the customer would simply have to pay more for their services. Of course, they would say that they need to remain competitive therefore they can't increase their fees...

**Dave A** · 06-Apr-12, 10:55 AM

I was kinda wondering...

There's a bit of a process that has to be followed before a retrenchment (and no doubt was in this case). What suggestions were put forward in that consultation process?

Let's say the goal was to cut staffing costs by 10% for example. Would the staff have proposed or accepted a 10% pay cut instead of the retrenchments?

**Blurock** · 06-Apr-12, 01:22 PM

Originally Posted by Dave A

Let's say the goal was to cut staffing costs by 10% for example. Would the staff have proposed or accepted a 10% pay cut instead of the retrenchments?

a 10% cut in the CEO's pay would save them R2,070,000 p.a. Same contribution could be made by the rest of the executive.

I am sure that other measures could have been taken, but as far as I know, no negotiations were made with staff. What hurts them however, is the way that the retrenched people are being marched out of the building by security staff.