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Union concerned about Cell C 'overloading'

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 22 Oct 2014
Solidarity says it expects to see more retrenchments at Cell C, from different areas of the business.
Solidarity says it expects to see more retrenchments at Cell C, from different areas of the business.

Mobile operator Cell C's downsizing process is causing concern among organised labour, spurring fears the company could be "overloading" new posts, making it difficult for new appointees to cope with the workload.

Solidarity telecoms industry organiser Linda Senekal explains that part of Cell C's restructuring process of certain parts of the company involves eliminating certain posts within its commercial division, and combining a number of positions into fewer posts.

"So, where you had two, three or four managerial posts, for instance, these will now be combined into one. We are concerned that while Cell C is seeking to make its business more cost-effective, it is overloading these posts and the workload could be heavy for people to handle," says Senekal.

Earlier this month, Cell C informed some of its employees that they may face retrenchment as the company has embarked upon a restructuring process within its commercial department. The operator stated this may affect 190 of the company's 1 458 employees, and plans to finalise the process by 31 January 2015.

Senekal says the union has held its first consultation session with Cell C, where the company laid out its restructuring plans. Another session will be held at the end of this month, where it will be revealed which of the employees will be placed in new positions and how many would be retrenched.

'Many have left'

According to Solidarity, Cell C has mentioned the possibility of severance pay amounting to one week's remuneration for every year of service, while also stating that, at this stage, very few vacant positions exist within the company that affected employees could apply for.

However, says Senekal, the company has also offered severance packages to those who choose to leave now, before the process is wrapped up. Those employees would get paid out until January, she says.

"At this stage, quite a few people have already left the company, opting to skip the retrenchment process and get paid out," says Senekal.

She adds the union expects to see further job cuts at the company, especially on the operational side of the business. "We really suspect that this is only the first wave, and we expect more to come."

The South African Communications Union does not have any members at Cell C, while the Communication Works Union could not be reached for comment.

Cell C did not comment at the time of publication, but did previously state it is continuously assessing the operational requirements and needs of certain areas in the company in order to enhance efficiencies, streamline the business and avoid a duplication of functions.

"This process is dynamic and has in the past and may in the future result in restructuring and/or optimisation in the company from time to time. This is not a financial or cost saving issue, but is simply about efficiencies. We have a clearly defined strategy and we have to align our structure with our objectives."

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