FNB and BBEU salary negotiations collapse

LEKOPANYE MOOKETSI
Correspondent | Friday February 4, 2011 00:00

'Regrettably the bank and union were unable to resolve their differences at this meeting and a deadlock was declared,' said Bomolemo Selaledi, FNB Head of Marketing and Communications.  She said they met with the union on December 14, 2010 in order to progress the 2010/11 salary negotiations.  Selaledi was responding to a Mmegi questionnaire on the matter.

The general secretary of the union, Keitshokile Basutli said the talks collapsed because the bank was not willing to negotiate. He said the bank approached the talks in bad faith as it had awarded non-unionised employees a salary increase while it was still involved in the initial negoations with the union.

He said the bank wanted to use this against the union by offering them the same increase.  However, he said the Industrial Court has ruled that any decision taken should not be used to the advantage or disadvantage of any of the parties. Basutli said they would have to refer the matter to the Department of Labour.

But Selaledi denied that the bank was acting in bad faith.  She said the union represents employees who chose to be its members and any action taken by the bank for the benefit of non-unionised employees cannot be seen to be negotiating in bad faith.

Last year the union took the bank to the Industrial Court, for effecting a salary increase for non- unionised members while the two parties were still engaged in negotiations.  The union felt that the bank was undermining the negotiations and the spirit of collective bargaining.

The Industrial Court ruled in the union's favour that the bank should not effect the salary increases until negotiations with the union were over. The bank has since appealed against the Industrial Court and the appeal will be heard at the High Court. The bank has however gone ahead and paid the salary increase to non-unionised members. 

Towards the end of last year, the union instituted contempt of court proceedings against the bank for failing to comply with a court order. But during the hearing of the matter, the union agreed to withdraw the case following the signing of a gentleman's agreement between the two parties.

The agreement stated that the union has withdrawn the contempt of court proceedings against the bank. The bank was going to implement an eight percent salary increase to unionised employees which would be similar to the one awarded to non-unionised workers.  The salary increase would be backdated to August last year. But this increase was to be interim as the two parties resumed salary increase negotiations.

The agreement further stipulated that during negotiations between the union and FNB, the salary increase implemented would not be used to the advantage or disadvantage of any party. But Basutli said contrary to this agreement, FNB was still insisting on imposing the eight percent that it has already paid. 

In their court application, the union wanted the court to declare that FNB was not entitled to effect the salary increase to non-unionised employees pending the determination of an appeal. The union also wanted the court to declare that FNB was bound to comply with the order issued by court.

The union wants FNB to be declared as having held the court in contempt. Further that the court should also impose punishment to the bank for ignoring its order.