As speculation swirls that Telkom plans to cut almost half its workforce as part of its strategy to cut back on expense, trade union Solidarity is taking the telco to court to stop it from using race as a retrenchment criteria.
Telkom, which is in the midst of cutting management roles, has rubbished the speculation, saying it is "not targeting specific numbers of individuals", but rather aims to reduce the management layers to achieve an employee cost-to-revenue ratio of 25% over the next five years.
Several media outlets, quoting a statement apparently from the South African Communications Union (SACU), reported the telco aims to cut 9 500 staff in the next six months. However, details of Telkom's five-year business plan, and its knock-on effect on staff numbers, are only set to be released during a meeting scheduled for Thursday and Friday.
The speculation appears to have arisen based on an internal mail, sent out by CEO Sipho Maseko, providing a list of leaders based on its "Fit for the Future" plan, which does not seem to take into account network field people - accounting for concerns 9 500 staff would be let go, SACU spokesman Koos Fourie postulates.
The news does not seem to have affected Telkom's share price, which gained 0.37% in mid-morning trade.
The listed company has 19 215 staff, of whom 2 635 are categorised as management and specialist employees; a ratio of 6.3 workers to each manager. Telkom has explained it "intends to reduce the management layer by about 25% by the end of the process", which puts the number of jobs on the line at around 650, close to the previously rumoured 1 000.
No clarity
Fourie says there is currently much uncertainty within Telkom because of all the changes that have taken place, including how Telkom's proposed buyout of Business Connexion for R2.67 billion will affect staff, and its deal with MTN to create a joint tower company. He notes, however, it is imperative the company be turned around.
Telkom's endeavours to claw back costs have apparently also spilled over to its suppliers, with Total Facilities Management Company (TFMC) - which handles facilities for Telkom - also reportedly set to let go as many as 1 500 staff.
While TFMC human capital director Aninka Wessels says the group has embarked on an independent retrenchment process, this would at most possibly affect 10% of the figure cited, which would comprise the entire company.
Legal challenge
Meanwhile, Solidarity is mobilising the public and the legal system to stop Telkom from using race as a retrenchment criteria
Solidarity deputy general secretary Johan Kruger says the union is filing papers at the labour court seeking an urgent interdict. He argues retrenchments are meant to be done on a "no fault" basis and cannot be used to meet employment equity plans.
Kruger says Telkom needs to be stopped before this becomes a practice across the country. In tandem with its legal bid, which the union hopes will be heard next week, it is mobilising the public through a Web site and SMS number to get the telco to withdraw its criteria. "This is our way of taking on this issue."
Telkom, however, says employment equity is only one of the four criteria that it will apply to the process, with the first three including qualifications and experience, qualification and potential, as well as last-in, first-out when more than one employee qualifies for appointment to the same position.
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