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Cell C dismisses job 'overloading' fears

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 23 Oct 2014
Cell C says positions will not be made redundant if the capacity for those roles is required.
Cell C says positions will not be made redundant if the capacity for those roles is required.

Mobile operator Cell C has dismissed concern expressed by Solidarity that its restructuring process could lead to "overloading", as the company seeks to downsize jobs by combining several posts into fewer positions.

"[W]here 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 too heavy for people to handle," says Solidarity telecoms industry organiser Linda Senekal.

However, Cell C has moved to allay the trade union's fears, saying: "This restructuring and rightsizing process has been started to enhance efficiencies, streamline the business and avoid a duplication of functions.

"Positions will not be made redundant if the capacity for those roles is required. We are following a proper consultation process and have been in consultation with the unions."

Earlier this month, the operator informed some of its employees they may face retrenchment, stating this may affect 190 of its 1 458 employees, and it plans to finalise the process by 31 January 2015.

While the union says retrenchments are taking place across Cell C's commercial department, and it anticipates further job losses could be seen in other divisions, the company argues this is not accurate.

"For clarity, we would like to note that Solidarity mentioned that the restructuring is taking place in the commercial department. This is incorrect, it is across the business and not only restricted to the commercial department."

More to come?

However, Cell C was not as straightforward when asked if further rounds of retrenchments would be announced. The company responded by saying it is continuously assessing the operational requirements and needs of certain areas to enhance efficiencies, streamline the business and avoid a duplication of functions.

"This process is dynamic and it is possible that restructuring and/or optimisation and/or rightsizing may take place in the company from time to time. This process is still ongoing and Cell C cannot comment on any future decisions it may or may not take."

Meanwhile, Solidarity claims it has received "confidential information" that Cell C is planning to continue with further retrenchments, in addition to those that have already been announced.

The union warns ongoing restructuring and retrenchments in the ICT industry put employees under immense pressure. Spokesperson Marius Croucamp expressed concern about the aggressive and continued retrenchments experienced by the industry over the past year.

"There have been far more retrenchments this year than in previous years. Certain companies are retrenching people on a large scale while only a few companies, such as Vodacom, have not yet announced any large-scale retrenchments," he said.

"We are currently seeing a pattern in the industry whereby retrenchments lead to overburdened employees and reduced production, which in turn may lead to further retrenchments. We will, therefore, urge employers during consultations that the welfare of its workforce should be the industry's first priority."

Economic pressure

The trade union attributed the recent increased job losses in the industry to pressure on the South African economy which, among other things, gives rise to sharply increased input costs. In addition, it says, the implementation of new technologies that the industry's survival fundamentally depends upon, has become unaffordable. The trade union also pointed out staff are not being adequately trained to master the new technologies in the industry.

In addition to Cell C, Telkom and MTN have announced restructuring processes that will lead to job cuts. At Telkom, approximately 1 000 employees have been affected by the process, of which 676 have already been placed in alternative positions and 302 have accepted voluntary severance packages. The company is in the process of placing a remaining 104 employees in alternative positions.

Meanwhile, MTN - the country's second-largest mobile operator - has announced that 847 of its employees would be affected by restructuring, out of which 200 have already accepted voluntary severance packages. "Placements in alternative positions are still ongoing. There may be as many as 354 forced retrenchments," says Solidarity.

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