Standard Bank Group's rationalisation process in Johannesburg and London is expected to save the group about R2.3 billion and will result in non-recurring rationalisation costs of about R490 million. The calculation of the impact of this process is at an early stage so should not be regarded as comprehensive and final.
This information was contained in a detailed SENS announcement this morning.
In terms of a Labour Court order in South Africa on Friday 12 November 2010, Standard Bank Group was required to supply SASBO, the recognised union for Standard Bank Group employees in South Africa, with certain information relating to the current rationalisation process being undertaken by the group in Johannesburg and London.
South African law requires the disclosure of pertinent financial information in order for SASBO to meaningfully represent its members in the rationalisation process.
It is currently estimated that the cost rationalisation process being undertaken in Johannesburg and London will result in non-recurring rationalisation costs of approximately R490 million, a portion of which relates to consultations between affected employees and the group that remain in progress and this figure may decrease. These costs will be accrued in full in the current financial year, which ends on 31 December 2010.
It is currently estimated that the costs that have so far been eliminated from the group's 2011 budget as a consequence of the rationalisation process in Johannesburg and London amount to a total of about R2.3 billion. The estimated costs to be eliminated comprise:
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