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Telkom retrenchments 'suspended'

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 Jul 2014
Solidarity says its agreement to halt Telkom's retrenchment plans will be made an order of court next week.
Solidarity says its agreement to halt Telkom's retrenchment plans will be made an order of court next week.

Trade union Solidarity claims Telkom has put its retrenchment plans on ice in an agreement signed with the union earlier today.

According to the union, "this includes halting the process wherein Telkom intended to use race as a criterion for layoffs".

Although the telco has yet to confirm its plans, Solidarity says the agreement means Telkom will suspend all planned selections, appointments and retrenchments, while the parties aim to appoint a facilitator next week to commence with the company's restructuring process in terms of section 189 and 189A of the Labour Relations Act.

"New criteria for the restructuring process will be tabled and considered during a consultation process managed by the appointed facilitator," says Solidarity in a statement.

Marius Croucamp, head of industry for the telecommunications sector at Solidarity, says the terms of the agreement are exactly what Solidarity wanted. "The agreement sends a signal to employers all over South Africa that Solidarity will not tolerate race-based layoffs. We will not let our members be traded in for black economic empowerment points. We also insist that restructuring processes take place in consultation with employees and be accompanied by a well-designed business strategy."

Croucamp adds Solidarity's supporters and members had sent thousands of messages of support to the union since last week, following court legal proceedings initiated by the union.

"Solidarity rejected Telkom's plan under which some of its white, coloured and Indian workers could be laid off in order to improve its black economic empowerment score. Solidarity also objected to the deficient consultation process and inadequate clarification of the company's turnaround strategy," read the union's statement.

Solidarity says the agreement will be made an order of the court next week.

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