CAPE TOWN - The unions and labour experts have weighed in on the looming legal challenge against some of the country’s top banks, saying the termination of bank accounts for companies linked to the Sekunjalo Group could be a major industrial relations nightmare.
“Thirty-three of the banks were caught red-handed manipulating the currency of South Africa. They have paid big fines in the US. We have not asked the state to boycott them because if all of them are guilty we wouldn’t know where to go,” said South African Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi.
“Why would they, with their own hands dripping in blood, be the paragons of morality?” Vavi said.
He said if banks wanted to act against anyone who is “rogue” in their perspective, then they must be consistent.
“I, as a matter of principle, would not like capital to abuse its power against anybody. Unless that person is somebody that has been blacklisted, then society can turn against that person.
“But you can’t blacklist people arbitrarily, based on your own perceptions. It's just so wrong. The principal problem is that the banks are acting in a manner that they cannot sustain, because then they must be asked to be consistent. Are they going to be blacklisting the banks of all the people that are coming out badly in the state capture?” he said.
In a David versus Goliath-like battle, and to ensure empowerment and transformation, as well as to stop abuse by South Africa’s all-powerful banking fraternity of socio-economic inequity, the wider Sekunjalo Group has launched several legal actions.
The raging action between the group and the banks could affect 200 companies, employing more than 8 500 staff members and more than 40 000 livelihoods
In papers filed with the Equality Court in the Western Cape, the more than 40 companies belonging to the group have asked the court to declare that the banks’ conduct constitutes “unfair discrimination” and that their decisions to close the group and its related entities’ bank accounts be overturned.
The group believes that the banks have a serious case to answer as they have violated its constitutional rights.
The companies have repeatedly maintained that there were no criminal nor irregular findings against them, yet the banks shut their accounts, citing reputational risk.
This was in stark contrast to how the banks have threatened white-owned companies implicated in serious fraud and corruption.
The Black Business Chamber (BBC) called for an investigation based on the fact that the banks have shown “bias” when deciding to close Sekunjalo bank accounts.
“There has been serious accusations levelled against various companies in various platforms, media and commissions. Such companies include Steinhoff, EOH, Tongaat Hulett and the four banks themselves, when they collude in manipulating the rand value. There is no radical action that was taken against such companies like closing of their bank accounts,” it said.
Cosatu spokesperson Sizwe Pamla said they were worried that workers would continue to be collateral damage in such instances.
“When banks freeze company accounts, workers are then at serious risk of not receiving their salaries, pensions and losing their jobs. In an economy with 46% unemployment and 2.2 million workers having lost their jobs since Covid-19, millions of workers have lost their wages and pensions, and most workers are highly indebted. We cannot afford to lose a single job. Nor should workers and their families be made to suffer,” Pamla said.
Labour expert Michael Bagraim said the closure of the bank accounts of any employer was a major industrial relations nightmare.
“The staff rely entirely on monthly and weekly payments done through a banking institution. If the banking institution closes the facilities, this creates what could be termed an unfair labour practice. It might be necessary for the staff to approach the Labour Court for a ruling on the forthcoming nightmare.
“This is a labour issue which has probably never been tested in the Labour Court before. It must be understood that there are over 40 000 dependants relying on the staff receiving their wages.
“The staff associations cannot wait for the disaster to happen before they take action. My understanding is that the group has approached the courts because they are disadvantaged. This is different to the rights of the staff and the Labour Relations Act,” said Bagraim.
Cape Times