Business Unity SA (Busa) is going to court in a bid to stop finance union Sasbo, a union federation Cosatu affiliate, from embarking on a total shutdown of the banking sector from Friday, the Banking Association SA (Basa) said, according to Business Day.

Basa said on Monday that Cosatu’s notice sent to the National Economic Development and Labour Council (Nedlac), under which Sasbo was planning to act, ‘may not have satisfied the requirements for the action to be legally protected’.

The Nedlac notice was first issued in August 2017 and should not be relied on in 2019, it said.

The matter is scheduled to be heard today.

Sasbo will be striking against job losses and retrenchments in the sector, which it argues are driven by corporate greed and not because of technological developments in the much touted fourth industrial revolution (4IR).

The protest comes as the industry is battling job losses and scrambling to digitise its operations due to competition from tech-savvy newcomers such as Discovery, TymeBank and Bank Zero.

Standard Bank, the second-largest bank, has been forced to close 91 branches, affecting 1 200 employees, as it re-aligns its retail and business banking delivery model to be on par with the demands of 4IR. Other banks could follow if trading conditions worsen.

Basa said the association and its members recognise the rights of bank workers to engage in protest action; however, these actions need to be undertaken in terms of the law, to ensure the safety of the public, businesses and their customers, and to ensure as little as possible disruption to the economy.

Basa members restructuring their businesses have indicated that a few hundred employees are at risk of retrenchment, despite the efforts of redeployment and reskilling. There are no final figures yet, as negotiations are still under way.

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