Huge relief for banks as strike averted

Yesterday’s averting by the Labour Court of the planned countrywide strike by the South African Society of Bank Officials (Sasbo), which would have had a crippling effect on the country’s banking operations, has been received with a sigh of relief by Business Unity South Africa (Busa) and the banking industry.

In handing down her ruling, Judge Hilary Rabkin-Naicker said the Congress of South African Trade Unions (Cosatu) and its affiliate, Sasbo, failed to comply with provisions of section 77 of the Labour Relations Act (LRA), which allowed for the strike to be protected.

Describing the intended protest action as “unlawful” and “in breach” of the LRA’s section 77, Rabkin-Naicker warned that any person who planned taking part in the protest would not enjoy protection afforded in terms of the labour law.

Cosatu and Sasbo, she said, were interdicted for encouraging or enticing employees to engage in the protest “until such time as they have complied with section 77 of the LRA”.

The planned Sasbo action was sparked by impending retrenchments in the banking industry, which included the country’s four big banks – First National Bank, Nedbank, Absa and Standard Bank.

Busa, which brought the urgent court challenge against Sasbo’s labour action, expressed relief at the court outcome.

“Busa is happy that the judge has reaffirmed our position, through her ruling.

“The law is clear in that it points out that problems of the economy can only be resolved through dialogue,” said Busa convenor at the National Economic Development and Labour Council (Nedlac), Kaizer Moyane.

The proposed shutdown would have seen between 40,000 to 70,000 finance sector employees staying away from work, with protests taking place in major towns and cities.

While calling on its members to respect the Labour Court ruling and stand down, Cosatu and Sasbo were yesterday locked in discussions with lawyers to discuss taking the ruling on appeal.

In a strongly-worded statement, the labour federation said it disagreed with the court’s decision but respected the country’s judicial system.

“We will abide by the decision, while launching an urgent appeal against this ruling.

“We call on all our members and workers who were ready to go on strike, to respect the court’s decision, report for work, but remain ready for the battle ahead,” said Cosatu.

“The federation is unperturbed by this minor setback and will apply to Nedlac for another section 77 strike certificate.

“Workers will not be cowed and intimidated by the ruling. They will only be energised to settle this score and organise a much bigger shutdown of the financial sector.”

Sasbo general secretary Joe Kokela reacted by saying: “We are not surprised by this ruling because we are fighting capital, where anything is possible.

“This judgment will serve to allow people to lose their jobs.

“Sasbo has instructed its lawyers to launch an urgent application against the judgment, while Cosatu will take the matter up with Nedlac by filing for a certificate.”

In its reaction, the Banking Association South Africa (Basa) said it noted the court ruling and maintained a consistent stance that protest action would not help to address the realities affecting the industry.

“Our 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,” said Basa managing director Cas Coovadia.

– brians@citizen.co.za

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