Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

NedbankBL Premium reports that Nedbank will be freezing executive salary increases as it seeks to cut costs and cope with a weak economy.  

The bank’s share price slumped to the weakest level in more than four years after it reported a surprise drop in earnings.  CEO Mike Brown said that the salary freeze would be applied to a group of about 50 executives, comprising members of the group’s executive committee and extending to executives at its subsidiaries, including the retail and investment-bank divisions.  The group did not disclose the savings it would achieve from the initiative, but, in any event, the freeze will amount to a symbolic gesture to remind the leadership of challenges ahead.  Nedbank and its counterparts are struggling to find growth in a sluggish economy where consumers are struggling with the effects of higher fuel prices, taxes and record unemployment, making the banks vulnerable to greater rates of default.  Nedbank, whose results came just hours before confirmation that SA’s economy shrunk in the fourth quarter, said it expected a tough first half of 2020 as the economy struggles to gain momentum.

  • Read the full original of the report in the above regard by Warren Thompson and Karl Gernetzky at BusinessLive (paywall access only)
  • Read too, Nedbank profit dives 7.3% during year to December, on page 17 of Business Report of 4 March 2020

Get other news reports at the SA Labour News home page