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MTN CEO was 'arrogant', says union

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 07 Jul 2015
The CWU says MTN CEO Ahmad Farroukh's resignation was prompted by the ongoing strike.
The CWU says MTN CEO Ahmad Farroukh's resignation was prompted by the ongoing strike.

The Communication Workers Union (CWU), which is waging an eight-week strike at MTN SA, says the resignation of the mobile operator's CEO "comes at a good time".

MTN yesterday afternoon confirmed Ahmad Farroukh has stepped down and will leave the company at the end of July.

"This was a difficult decision to take for Ahmad, but unavoidable due to personal and family reasons," says MTN group president and CEO Sifiso Dabengwa.

However, CWU president Clyde Mervin rejected "personal reasons" as being behind the resignation, and accused MTN of spinning propaganda. "We know very well that he is resigning because of the strike. MTN can say what they want, but he couldn't bring an end to the strike and that's why he is going."

Yesterday, an MTN source, who spoke to ITWeb ahead of the company's official announcement about Farroukh's decision to quit, confirmed the strike weighed heavily on Farroukh, and his family, who live abroad, are reportedly concerned about his safety.

"We have long called for his resignation, even before the strike started," says Mervin. He adds the union found Farroukh to be "arrogant" and "disruptive" during its engagements with him.

"We have engaged with him on a number of occasions and it was clear he did not understand the country's labour laws. He didn't care about the workers at all, so his resignation comes at the right time."

MTN said yesterday a successor to Farroukh would be announced as soon as the new appointment is finalised.

Meanwhile, the ongoing CWU strike - over salary hikes and bonus payouts - has seen union members protest outside the cellular giant's various facilities around the country.

Both parties suggested last week that an agreement was close to being concluded.

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