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About 200 managers accept Telkom package

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 16 Sept 2014
Some 200 Telkom managers are taking retrenchment packages, while another 140 will be axed in phase one of the process.
Some 200 Telkom managers are taking retrenchment packages, while another 140 will be axed in phase one of the process.

A total of about 200 Telkom managers would have taken voluntary severance packages by the end of this month, while another 140-plus will receive their marching orders by 1 October, says a labour union involved in the downsizing process.

Telkom last month announced its group-wide restructuring process would proceed, after consensus between it and the labour unions was reached. The company's need to restructure comes as it seeks to cut costs and streamline its operations.

While it is in phase one of the retrenchments, which would see more than 350 managerial level posts done away with, Telkom stated it would seek to cut a total of about 2 500 managers over all three phases of this process.

South African Communications Union (Sacu) president Michael Hare says 101 managers had taken voluntary severance packages in August, and another 90 are expected to take packages by the end of this month.

While this means that close to 200 Telkom employees would have been axed since the beginning of August, a further 140-plus are expected to get severance letters by 1 October. Hare says the union is so far satisfied with the progress of the retrenchment process. "The process has been slow, but the company has been sticking to the guidelines, so we are satisfied."

While Telkom's initial announcement said it would shed 2 500 jobs in total, the union says the final number could be significantly less.

Solidarity spokesperson Marius Croucamp expects the final number of jobs lost at Telkom to be between 300 and 400, as many of the affected workers would be able to reapply for positions under the new company structure.

However, the retrenchment and rehiring of employees by Telkom could prove to be yet another sticking point, as the company previously indicated it would use employment equity as a criterion for retrenchment decisions, in case of a stalemate.

"Where candidates are tied, the Employment Equity Act becomes the tie-breaker, which is exactly what companies do when they recruit staff," said Telkom CEO Sipho Maseko. Both Solidarity and Sacu said they would strongly oppose this.

Hare this morning said the issue had not cropped up yet, but by the end of this month Telkom would reveal the exact criteria used for axing and rehiring each employee. "So there are still some outstanding issues, but we will see how the process goes," Hare says.

Meeting with MTN

Meanwhile, Solidarity is set to hold its first consultation meeting with MTN tomorrow, as the mobile operator prepares to axe up to 847 employees at managerial level.

Croucamp earlier said MTN had agreed to extend the consultations concerning the retrenchment process by another month, to allow for thorough and fair consultation. "During the retrenchment consultations, Solidarity will focus on limiting the impact of the retrenchments as far as possible. In addition, Solidarity will try to negotiate the best possible alternatives for our members."

However, Croucamp also says the union remains disappointed with MTN's refusal to ask for the Commission for Conciliation, Mediation and Arbitration (CCMA) to facilitate the retrenchments. "Our request for MTN to seek CCMA facilitation was a test to see if MTN would be willing to have the process overseen by an independent party. We are disappointed, but the process will continue without facilitation."

Communication Workers' Union deputy president Clyde Mervin was unavailable to comment this morning.

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