COSATU backs Sasbo against African Bank layoffs
What happened?
African Bank announced it might cut 1,200 jobs and close 90 branches. The bank says it needs to save money after reporting a loss of R624 million for the six months ending March 2026. It plans to use Section 189A of the Labour Relations Act to start a retrenchment process.
Why COSATU is involved
The Congress of South African Trade Unions (COSATU) has thrown its full weight behind the South African Banking Sector Union (Sasbo). COSATU spokesman Zanele Sabela said the federation rejects the bank’s plan and will do everything possible to protect the 1,200 jobs.
Impact on workers and families
Sabela warned that losing these jobs would hit workers and their families hard. With South Africa already facing high unemployment, cutting more jobs would worsen the situation. COSATU argues that employees should not pay for management’s poor strategic choices.
Alternative solutions
Instead of layoffs, COSATU urges African Bank to look at other ways to cut costs. The union suggests:
- Reviewing the recent acquisition spree (Ubank, Grindrod Bank, Sasfin Capital Equipment Finance, and Commercial Property Finance).
- Finding efficiencies that do not involve job losses.
- Engaging workers in discussions about sustainable cost‑saving measures.
COSATU says it will support Sasbo in pushing forward these alternatives.
Call for action
The union is asking the South African Reserve Bank, as a major shareholder, and the Department of Employment and Labour to step in. COSATU believes their intervention could prevent what it calls an “impending disaster” for thousands of workers.
Conclusion
COSATU’s message is clear: workers should not bear the burden of bad business decisions. By standing with Sasbo, the union aims to save every one of the 1,200 jobs at African Bank and push for smarter, fairer ways to handle the bank’s financial challenges.
