The union highlights the urgent need for dialogue to address the impact of retrenchments and questions the justification for the bank’s actions amid ongoing corporate conflicts.
The Information Communication and Technology Union (ICTU) has called on Nedbank to reconsider its decision to close the banking facilities of the Sekunjalo Group, warning of the dire consequences for thousands of workers and their families.
In a detailed letter sent to Nedbank’s leadership, ICTU General Secretary Vulture Ntuluki expressed deep concern over the impact of the bank's actions on ordinary employees, many of whom now face job losses and financial hardship.
The letter, addressed to Nedbank Chairperson Daniel Mminele and Chief Executive Jason Quinn, outlined how the bank’s decision has led to retrenchments across Sekunjalo's subsidiaries, putting more than 3,000 jobs at risk. Ntuluki highlighted that these employees, who are the sole providers for their households, now face a bleak future. "This action has had a direct and detrimental impact on the innocent employees of the Group’s companies and their families," the letter states.
ICTU claims that the bank's decision stems from recommendations made by the Mpati Commission of Inquiry, which identified Sekunjalo and its directors as "reputational risks." However, the union questions whether this justifies such a far-reaching decision that disproportionately affects employees, rather than those in management. "We question whether this justifies such a severe action against the Sekunjalo Group, which ultimately punishes ordinary employees and their families," Ntuluki wrote.
The union further warned that Nedbank's decision would have far-reaching implications, not only for Sekunjalo workers but also for the country’s economy, especially in Black communities. "Your bank’s approach not only threatens the survival of the Sekunjalo Group but also contributes to the rising unemployment rate in our country, fostering crime and violence that impede development," the letter added.
The situation has escalated following the issuance of a Section 189(3) notice by Sekunjalo, signalling further retrenchments directly tied to the closure of its banking facilities. ICTU stressed that these closures have already led to clients severing ties with Sekunjalo, further compounding the threat to the livelihoods of its employees. The union emphasised that businesses cannot operate legally without banking facilities, effectively threatening the survival of Sekunjalo and its subsidiaries.
Ntuluki invoked a Kenyan proverb to describe the situation: "When two elephants fight, it is the grass that suffers." He argued that while the battle between Nedbank and Sekunjalo may be driven by corporate considerations, it is the workers who are ultimately suffering as a result of the dispute.
The union also raised concerns about the bank's corporate social responsibility (CSR) commitments, questioning how Nedbank could reconcile its stated goals of supporting economic development with actions that threaten Black empowerment initiatives. "We believe in dialogue with our stakeholders, especially banks, as they play a crucial role in safeguarding our assets and contributing to our nation’s economy," the letter noted.
In its closing remarks, ICTU expressed its willingness to engage in constructive dialogue with Nedbank to resolve the issue. The union is calling for urgent intervention to prevent further job losses and has warned that if no action is taken, it may escalate the matter to political parties or seek government intervention. "We do not view you as unreasonable individuals, and we would prefer to address this matter before escalating it to government intervention or political parties," Ntuluki wrote.
Nedbank has yet to respond to ICTU’s letter. ICTU remains hopeful that a resolution can be reached through dialogue to prevent further damage to the livelihoods of the thousands of Sekunjalo employees at risk.