By Mpho Moloi
Johannesburg, South Africa – The Congress of South African Trade Unions has vowed to fight African Bank’s plans to retrench 1,200 workers and close around 90 branches. COSATU says South Africa simply cannot afford to lose more jobs at a time when unemployment remains painfully high and many families are already struggling to survive.
The federation has thrown its full support behind Sasbo, the union that represents bank workers, in opposing the proposed cuts. COSATU leaders have warned that every job lost adds to the heavy burden already carried by working-class communities across the country.
COSATU Vows to Oppose African Bank’s Retrenchment Plans
COSATU has made it clear that it will use every available tool to stop the retrenchments. The federation says it will stand shoulder to shoulder with Sasbo during negotiations and will not accept any process that leaves thousands of families without income.
Union leaders argue that African Bank’s plans come at the worst possible time. With the economy still recovering from years of slow growth, load shedding, and high living costs, further job losses in the financial sector would hit ordinary South Africans hard.
The union has called on the bank’s management to explore other options before moving ahead with mass retrenchments. These options include reskilling programmes, early retirement packages for those who want them, and finding ways to keep branches open in communities that need them most.
Details of the Proposed Job Cuts and Branch Closures
African Bank has indicated that it needs to restructure its operations to remain competitive and financially sustainable. The bank plans to cut 1,200 positions and close approximately 90 branches as part of this overhaul.
The proposed cuts would affect staff across different levels, from tellers and branch managers to back-office workers. Many of those facing possible retrenchment have worked at the bank for years and have families who depend on their salaries.
Branch closures would also have a wider impact. In smaller towns and townships, African Bank branches often serve as the main or only place where people can access banking services, apply for loans, or receive social grants. Closing these branches could force customers to travel long distances or turn to more expensive alternatives.
Impact on Workers and Their Families
For the workers who may lose their jobs, the news has brought fear and uncertainty. Many have mortgages, school fees, and medical aid payments that depend on their monthly salaries. Losing a job at African Bank would not only affect the individual but entire households.
COSATU has highlighted how job losses in one sector quickly ripple through communities. When a breadwinner loses their income, families cut back on food, transport, and other essentials. Children may be forced to drop out of school, and health problems can go untreated because of a lack of money.
The union says it has already begun engaging with affected members to provide support and information about their rights during the retrenchment process. It has also called on government to step in and help protect jobs in the financial sector.
Broader Economic Context of Rising Unemployment
South Africa’s unemployment rate remains one of the highest in the world. Millions of people, especially young people and those living in rural areas, struggle to find work. Every new round of retrenchments adds to this crisis and makes it harder for the economy to recover.
The financial sector has not been immune to these pressures. Banks have faced rising bad debts, higher operating costs, and increased competition from fintech companies. Some institutions have responded by cutting costs, often through job reductions.
COSATU argues that retrenchments are not the only solution. It says companies should look at sharing the pain more fairly, perhaps by reducing executive bonuses or finding efficiency savings that do not involve mass dismissals.
The federation has also pointed out that when banks close branches in poorer areas, they often leave communities without access to financial services. This can push people towards loan sharks and other risky options that deepen poverty.
Union’s Call for Alternatives to Job Losses
COSATU and Sasbo are pushing African Bank to consider alternatives before finalising any retrenchment plans. These include voluntary severance packages, early retirement options, and training programmes that could help workers move into new roles either inside or outside the bank.
The unions have also called for meaningful consultation with workers and their representatives. They say any restructuring must be transparent and must take into account the human cost of job losses.
In addition, COSATU has appealed to government to use its influence to protect jobs. It wants the Department of Employment and Labour and other relevant bodies to engage with African Bank and explore ways to minimise the number of retrenchments.
The federation believes that protecting jobs in the banking sector is not just about the workers directly affected. It is also about maintaining stability in communities that rely on these jobs and the services the bank provides.
Government and Public Response Expected
Government has not yet made an official statement on African Bank’s plans, but pressure is likely to grow for intervention. With unemployment already a national crisis, any large-scale job cuts in a major bank will attract political attention.
Civil society groups and other unions are also expected to weigh in. Many South Africans have personal experience of retrenchments and understand the pain they cause. Social media has already seen an outpouring of support for the workers facing possible job losses.
Public anger about rising living costs and job insecurity could turn this into a wider debate about how companies treat workers during difficult economic times. COSATU is hoping to use this moment to push for stronger protections against unfair retrenchments across all sectors.
What Happens Next in the Dispute
The next few weeks will be critical. Sasbo and COSATU will continue to engage with African Bank management in an attempt to reduce the number of job losses or find alternatives. If talks fail, the unions have indicated they are prepared to take further action, including possible protest action or legal challenges.
For the workers whose jobs are on the line, every day brings more anxiety. Many are hoping that public pressure and union support will force the bank to reconsider its plans.
COSATU has made it clear that it will not stand by while thousands more South Africans are pushed into unemployment. The federation says the fight to save these jobs is part of a bigger struggle to protect the dignity and livelihoods of working people across the country. As the process unfolds, all eyes will be on African Bank and whether it chooses the path of mass retrenchments or finds a more humane way forward.
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