‘Retrenchments in banking sector due to no economic growth’

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Managing Director of the Banking Association of South Africa, Cas Coovadia says the current retrenchments in the banking sector is because there is no growth in the economy.

Coovadia says when businesses are not growing, their volumes decrease, and that ultimately affects jobs.

He says the current lack of policy certainty erodes the confidence needed for investment which could lead to business growth and greater employment.

“I think retrenchments, whether in the banking sector or elsewhere, are essentially happening because there is no business growth, and businesses are restructuring just to remain efficient – both in their employment area, in their capital area, just to remain afloat and keep their heads above water. So the issues are that we’ve got to address what is the problem, and the problem is that we are not creating an environment for investment and for business growth.”

Meanwhile, the South African Society of Bank Officials (SASBO) has provided details on their planned nationwide strike action this Friday.

Around 40 000 members are expected to take part in the countrywide strike – which is against the retrenchment of workers and digitalisation of banking systems.

SASBO’s General Secretary Joe Kokela says the union will ensure that ATM’s and banking operations are not functional…

“In Gauteng it will start at COSATU House down to the Bank city, where the memorandum will be handed over. In Durban-they will go to the City Hall. In Cape Town CBD they will be handing over their memorandum. In Bloemfontein people will be converging and marching to the Square there. The other one will be in Port Elizabeth. All the strikes are scheduled to start at 10 and finish around 14:00.”


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