(BusinessDay SouthAfrica) – Absa is under pressure from trade unions to confirm that its business reorganisation will not result in job losses, which some insiders have estimated could be as high as 3000.

The Barclays-owned group denied it was planning mass retrenchments on the scale of those carried out more than a year ago by Standard Bank , but trade unions Solidarity and Sasbo said their members were concerned about job losses. Absa has 35000 permanent staff in SA.

Insiders said there was evidence of the growing influence of Barclays over strategic issues such as cost containment and risk management. Absa insist ed that the reorganisation could not be compared to retrenchment.

The only big bank to confirm retrenchments was Standard, which laid off nearly 2000 staff in SA and the UK to cut costs. First National Bank and Nedbank have used mainly staff attrition to contain personnel numbers.

Absa insiders said that even though the bank’s overall costs grew by just 6% in the year to December, to R25,5bn (2010: R24bn), there was concern that staff expenses rose by 9% to R13,64bn and accounted for 54% of total expenses.

Absa has blamed higher staff expenses mainly on salary increases and bonus payments. Click here to read more

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