Cell C has joined other telcos, such as Telkom and MTN, in cutting its staff complement, with trade union Solidarity saying its members have received notices that retrenchments are in the offing.
The union says letters sent to some of its members indicate as many as 190 of Cell C's 1 458 staff members may be retrenched as the company restructures. "Solidarity will be representing its members at Cell C in order to reduce the impact of this retrenchment process."
Cell C has confirmed it is consulting with staff about the possibility of retrenchments because it is restructuring "certain areas of the company". It confirms the process could affect up to 190 staff, some of whom could also be redeployed.
"We wish to confirm that the process followed is in line with the Labour Relations Act. Furthermore, the company is acting responsibly and will do everything in its power to support those affected by this process. Due to the nature and sensitivity of the process, Cell C cannot provide further comment," it says in a statement.
Solidarity says the letter to staff indicates it plans to wrap up the process by the end of January. Cell C, according to the union, mentions the possibility of severance pay amounting to one week's remuneration for every year of service. "The company also states that, at this stage, very few vacant positions exist within the company that affected employees could apply for."
Linda Senekal, Solidarity's organiser in the telecommunication industry, says the union will do everything in its power to limit the impact of the retrenchment process on its members. "We are especially concerned about the emotional impact of the retrenchments on our members."
Cell C's move follows similar ones by Telkom and MTN.
MTN recently said it would axe more than 800 managerial positions as it seeks to cut costs, while Telkom earlier announced it is looking to retrench about 2 500 managers as part of a group-wide restructuring process.
However, Solidarity spokesman Marius Croucamp has said the ultimate number of causalities at Telkom could be substantially less, as many of the affected employees could be rehired under the company's new structure. He estimated the final number of Telkom job loses will be between 300 and 400, and 200 managers have already left.
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