Dread as Absa to retrench
Ryder Gabathuse | Friday March 13, 2020 15:53
About 1,100 employees of the bank who recently worked for the bank’s hefty rebranding exercise that marked the final leg of acquisition from Barclays Plc are now faced with an uncertain future, sources say.
Botswana Bank Employees Union (BOBEU) has claimed that although it has a working recognition agreement with the bank, it has not been properly consulted about the matter.
The union is however, meeting its Gaborone branch members next week Tuesday to determine the way forward. In view of the development, there is a likelihood of BOBEU and Absa squaring up over the retrenchment issue.
Employees eligible for the VSS include the lowest cadre up to the position of director.
Absa, one of Africa’s banking giants, with a presence across 12 countries made its presence felt across in the country when it painted Botswana red at its recent launch, which was characterised by pomp and glory.
Mmegi is in possession of leaked documents from worried BOBEU members, which details the bank’s plan to effect the VSS for an unspecified number of employees end of April this year.
“We would like to announce the voluntary separation scheme which will be available to colleagues with effect from 2nd March, 2020,” read a Human Resources circular authored by director, people function, Tumelo Mokowe from Absa Bank Botswana head office and passed to all the employees.
According to the bank’s communication, “the objective of the VSS is to enable the bank to provide mutually agreed packages for colleagues who would like to separate from the bank.”
Applications are entirely voluntary and Mokowe’s letter emphasises that no pressure will be placed on any individual to apply.
Applications for the VSS were opened from 12th March 12 and close on March 20, 2020.
The bank’s management has promised to provide necessary support to all colleagues interested in the VSS during this period and also engage various stakeholders as may be required.
The VSS process is anticipated to conclude by April 30, 2020.
“By which date all colleagues whose applications would have been approved, will be released ,” says the bank. The outcome of the applications will be communicated to the affected not later than March 31, 2020.
The emphasis on the bank’s communication is that those approved for the VSS will be required to serve one-month notice effective from April 1 to April 30, 2020.
It has also been highlighted that the maximum service payment is 20 years of service where the number of years of service exceed 20 years.
A minimum service payment of P80, 000 will be offered where the calculated service payment, as per the formula, is less than P80, 000.
“Acceptance of any application is at the bank’s absolute discretion and will be subject to business requirements,” the announcement further explains.
BOBEU secretary general, Arone Mosokotso confirmed that Absa Bank Botswana Limited has slapped its employees with a VSS, though he was cagey to give full details of the development
“BOBEU Gaborone branch will hold a meeting regarding the issue next week Tuesday where we will get a mandate from the members on the way forward, “explained Mosokotso in an interview this week.
He however, emphasised that it was not only at Absa as Standard Chartered Bank Botswana also has its issues affecting job security for its employees.
“There are a lot of issues on the table,” pauses Mosokotso before adding: “ We will be able to articulate our grievances as workers next week Tuesday as that’s when we will be able to talk to the media freely after hearing our members’ side of the story.”