Staff matters are set to come to a head next week at Telkom, as the embattled telco will face staff to detail how many will be affected by retrenchments. Two management disputes are also set to be dealt with.
On Monday, between 8am and 9.30am, all of its around-20 000 staff will tune into a "broadcast session of great importance", according to an internal e-mail. The broadcast, to be hosted by CEO Sipho Maseko, will detail "Telkom's intention to build the right organisation for the future" and executive members of its human resources team will be on hand to answer questions.
Unions expect this broadcast to be Telkom's much-anticipated job cuts announcement. The telco previously said it needs to cut R1 billion in expenses every year for the next five years, and that jobs will definitely be part of this cost-cutting exercise.
Although numbers have yet to be detailed, talk is that as many as 7 000 of Telkom's 20 000 staff could be without work, with 1 000 of these coming from management level. Telkom says only that it continues to review its operations to improve performance and create greater efficiencies, and is considering all options, including staff restructuring, as part of its turnaround strategy.
Saving millions
South African Communications Union (SACU) spokesman Harry Botha says unions have been informed that Telkom will cut staff. He says the union will intervene to make sure proper processes are followed, because there has not been any consultation as yet.
Botha says a voluntary process would be the best route for Telkom to follow, as 1 000 applications from staff were rejected last year. He anticipates Telkom trying to trim between 10% and 15% of its payroll, which was almost R10 billion in its last financial year.
Last year, Telkom trimmed its staff by 1 500 after a round of voluntary retrenchments and early retirements that saw its workforce trimmed by 1 500 employees, although this move cost it R753 million. The Communication Workers Union (CWU) represents 38% of Telkom's workforce, while the other two unions combined have 35%, with SACU being the second-largest body.
Inevitable
Solidarity spokesman Marius Croucamp says unions expect to be informed of job cuts on Monday, a process he views as inevitable. Monday's meeting is not likely to yield "good news", says Croucamp, noting the timing is suspect, as the meeting is after the elections.
Croucamp says there has been "a lot of noise" around job cuts, with figures of about 1 000 staff being affected being bandied around.
In an unrelated matter - managers are at the Commission for Conciliation, Mediation and Arbitration (CCMA) again next week over the method used to determine increases and bonuses, while another internal dispute from managers is also being dealt with.
Next week will "definitely" be one of turmoil at Telkom, because of the restructuring announcement, management raising issues internally, and salary hike matters being heard at the CCMA, says Croucamp. Its year-end results are set to be published on 13 June.
CWU spokesman Clyde Marvin says he will react after Monday's meeting, but notes it has received correspondence indicating Telkom would like to discuss retrenchments, although details have yet to be revealed.
Maseko has been on a drive to restore Telkom's sustainability in the face of declining fixed-line income and a cost-heavy base.