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357 Telkom managers to get the axe

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 04 Aug 2014
As Telkom starts to restructure this week, 357 managers out of about 1 000 are expected to be dismissed.
As Telkom starts to restructure this week, 357 managers out of about 1 000 are expected to be dismissed.

As telecoms giant Telkom kicks off its restructuring process this week, 357 managers are expected to face the axe in the first phase of the company's overhaul, with a total of about 1 000 set to get their marching orders by the end of the three-year process.

Telkom last week said its current restructuring process would proceed, as consensus between all the parties had been reached, following "extensive facilitated consultations and deliberations".

The company also stated labour and management had agreed the process of placing employees and offering voluntary severance packages/voluntary early retirement packages to management would proceed next week.

However, certain details still need to be ironed out and unions will continue to hold talks with management during this week.

South African Communications Union (SACU) president Michael Hare says unions and Telkom will continue discussions about severance packages this week, with labour hoping to get maximum value for its members. Hare explains that, should these negotiations continue for a longer period of time, those managers who have already agreed to take a severance package would receive additional benefits on a back-dated basis, should a better deal be negotiated.

The unions are satisfied with the facilitation process, but each of the three labour organisations within Telkom will have to wait and see how many of their respective members will be affected during phase one of the retrenchments.

"We are waiting for Telkom to give us more details around timelines and the placement of managers," says Hare.

Happy with process

Solidarity spokesperson Marius Croucamp says the union is satisfied with how the facilitation process was conducted, since it was headed by independent attorney Charles Nupen. His appointment was made in terms of a Labour Court order to facilitate consultations regarding the proposed retrenchments at Telkom.

"The entire process is starting to unfold slowly," Croucamp commented this morning, but he was unable to say how many Solidarity members would be affected during this phase.

However, a potential sticking point could be the criteria used for retrenchment decisions, with Telkom earlier saying it would take employment equity into account in case of a stalemate. This is a point the unions have vehemently opposed, with both SACU and Solidarity threatening to take legal action should the company choose to invoke the Employment Equity Act during the process of retrenchments.

Hare says negotiations around retrenchment have not yet been concluded and the unions expect to continue talks with Telkom around this point.

Croucamp says Solidarity is still opposed to employment equity being used as criteria for dismissals and says the union will appeal any retrenchment made on this basis. However, he says, the entire process will be looked at on a case-by-case basis.

The Communication Workers Union was not available for comment this morning.

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