Banks led the walkout because they are dissatisfied that the Charter dispute on broad-based black (BBBEE) ownership has not yet been resolved.

The dispute arose earlier this year because banks and other financial institutions wanted to be treated as a special case, and to have lower BBBEE ownership targets and measurements than companies in any other sector of the economy. They do not want the Financial Sector Charter to be aligned with the minimum ownership targets in the Codes.

Talks to resolve the dispute are being held by Charter constituency principals, Cde Zwelinzima Vavi representing the Nedlac Labour constituency, Cde Blade Nzimande of the Nedlac Community Constituency, and Minister of Finance Trevor Manuel on behalf of Government.

A month ago, banks and others agreed to negotiate all other aspects of aligning the Charter with the Codes while the ownership dispute resolution process continued on a parallel track.

But yesterday they walked out of these negotiations, saying progress by the principals was too slow, and that they were dissatisfied that the principals had not given them written progress reports. They refused to finalise discussions on any other aspects of the Charter if they did not get their way on lower black ownership.

We condemn this behaviour of holding the financial sector transformation process to ransom.

It is becoming clear that banks, and other institutions, are using the Charter as a shield against genuine transformation of the financial sector, instead of as a catalyst for the change the sector sorely needs. Banks and others have exposed themselves as wanting to derail the multilateral Charter process and to go it alone in trying to get government to treat them as a special case that should transform less than the rest of the economy.

The National Treasury supports the banks’ position on lower black ownership targets and measurements for financial institutions. As COSATU, we think it is a disgrace that the Treasury acts as a shop steward of the banks.

COSATU will resist any unilateral attempts by financial institutions and their trade associations to gazette a Charter that protects the industry from genuine broad-based economic empowerment that is not at least equal to the universal minimum standards of the CoGP.

We will mobilise against any attempts by the financial sector or any government department to exclude us as representatives of millions of users of financial services from the governance structures of the Charter Council.

COSATU has strongly supported the financial sector transformation process since its inception eight years ago. We reiterate our position that genuinely broad-based black ownership as well as improved access to appropriate and affordable financial services and credit are both necessary conditions for transformation of the financial sector.

We will mobilise our members to consolidate the gains already made through working class mass action in improving access to financial services by the previously excluded majority of our people.

Just as we have mobilised our members throughout the country to demand decent wages, lower food prices and affordable electricity, we will renew our efforts to demand genuine transformation of the financial sector so that it serves the needs of all South Africans, especially the workers and the poor.