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Axed employees stall Bytes, Inter-Active merger

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 30 Jan 2015
Axed Inter-Active Technologies will today argue as to why competition authorities should block the company's acquisition by Bytes People Solutions.
Axed Inter-Active Technologies will today argue as to why competition authorities should block the company's acquisition by Bytes People Solutions.

A group of six former employees is set to make representations before the Competition Tribunal this morning, after objecting to the merger between their former employer - Inter-Active Technologies (IAT) - and Bytes People Solutions.

The Competition Commission earlier this week recommended the tribunal approves the acquisition of the talent management company by Bytes People Solutions, a division of the Bytes Technology Group, subject to conditions.

According to the commission, its investigation found there is a horizontal overlap in respect of customer interaction and communication management services through outsourced call/contact centres and other social media platforms. However, it concluded the transaction is unlikely to substantially prevent or lessen competition, but that the merger does raise public interest concerns.

"IAT appears to be in a financially precarious position, and the commission found the proposed transaction will result in fewer retrenchments than otherwise would have been the case under liquidation," says the commission. The authority proposed imposing conditions to ensure there would be no additional job losses as a result of the transaction.

However, a last-minute objection by the former IAT staffers prompted the tribunal to put the merger on hold, and called the group to make representations today.

One of the former employees, who cannot be named as the matter is sub judice, reveals the group is objecting on grounds that more than 50 employees were retrenched by IAT during its merger talks with Bytes.

He says the main thrust of the group's argument is based on the fact that an employer cannot retrench staff while selling a company, and also that conflicting reasons have been given to employees for the merger and their retrenchments.

In October, IAT axed 4% of its 1 127 staff, due to what it described as "extreme pressure" on SA's economy. Employees were informed in September of the restructuring and rationalisation process the company had decided to undertake.

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