Sasbo strike won't have desired effect - Banking Association of SA

The association's Cas Coovadia said that while union Sasbo had every right to strike it was not the right move.

Banking Association of South Africa's Cas Coovadia. Picture: @BankingZA/Twitter

CAPE TOWN - The Banking Association of South Africa said that a banking sector strike would not have the desired effect.

The sector’s biggest union Sasbo said that over 40,000 finance sector employees were expected to take part in a strike against retrenchments in the industry on Friday.

The association's Cas Coovadia said that while the union had every right to strike it was not the right move.

"Striking in this environment is not going to have the desired result. My association has informed me that they've talked to Sasbo often and what needs to happen is that banks need to sit down with the union and talk through how we manage the situation."

Coovadia said that the industry would work to ensure consumers did no bear the brunt of the strike.

"Put into place security measures and ensure that ATMs are filled with cash and that we don't run out of cash. We will do everything in our power to minimise disruptions to ensure customer services are delivered."

Meanwhile, business organisation, Business Unity South Africa (Busa) is on Wednesday morning heading to court to find out if its application for an interdict against the strike has been successful.

The Revenue Service said it had contingency plans in place to mitigate the impact of Friday's strike.

The strike comes after several banks announced restructuring plans and the digitisation of banking systems, which would see thousands of retrenchments.

The South African Revenue Service (Sars) said that all participants were rolling out plans to ensure that there was minimal disruption to its services.

It added that it would work with all roleplayers to avert any disruption to the country's financial system.

Sasbo's Joe Kokela said they did not intend on meeting with the Banking Association of South Africa ahead of the stay away.

"Banks are still trying to consult and tell us about the divisions that the banks have closed and they're making sure that they minimise the headcount into those divisions. So when you look at all the numbers that they've given to us as Sasbo, you realise that nearly 10,000 jobs will be lost this year alone in the banking sector."

Additional reporting by Clement Manyathela and Kaylynn Palm.