Johannesburg, 16 Oct 2014
Telkom's turnaround strategy and organisational restructuring has attracted much attention in recent days. This journey is informed by a number of complex and demanding considerations key to the successful execution of the process.
In April this year, as part of the larger Telkom turnaround strategy, the company began specific discussions with representatives from organised labour. These discussions focused on the initiation of an organisational restructuring process that would result in some headcount reduction.
Telkom's commitment, throughout these discussions, has been to conduct this difficult process with respect to both the letter and the spirit of South Africa's labour laws. An independent mediator has been used to facilitate all the discussions, in the best interest of all affected parties.
The staff affected by this organisational restructuring, has been limited to the management and specialist layers. Telkom engaged with labour on all elements of the process, including the timelines to be followed.
In line with these agreed-upon timelines, each affected individual was given two opportunities to apply for positions with the new structures. Staff members were also engaged to suggest alternate options, such as the voluntary severance packages and voluntary retirement options.
At the end of September, the "Section 189" process was concluded, for the affected staff. As per the agreed-upon process, staff whom had not been appointed into a new role by the end of September, were at the end of the "Section 189" process, and were therefore issued with notices of termination. The period of service, for those affected individuals, concludes at the end of October.
Throughout this difficult time, Telkom has always sought to pursue any reasonable measure to retain qualified and experienced staff.
To this end, Telkom has also informed all affected staff members that they are eligible to apply for any roles that may become available through normal staff movement processes, such as resignations or transfers, during their notice month of October. This offer is not part of the "Section 189" process, but is a separate action by the company as a final attempt to place affected candidates.
The intention of the Telkom turnaround strategy is to secure the future commercial sustainability of the business. There should be no doubt, the sustainable success of this company is largely dependent on both the attraction and retention of qualified, competent and experienced professionals.
Simply placing people into positions, regardless of their competencies, qualification or experience, just to avoid their retrenchment, would be a huge disservice to the business. While we respect labour's right to protect their members, Telkom must place the right people in the right structures and roles. The organisational restructuring has not been driven by headcount reduction targets, but rather by business imperatives that will shape the long-term commercial sustainability of the company. Telkom will therefore not be withdrawing the notices of termination that have been legitimately issued in line with the agreed-upon process.
"This turnaround is a tough journey. These staff reductions have resulted in high levels of anxiety and we remain committed to doing all we can to limit the impact of these changes on our people. We do, however, need to remain focused to deliver on our collective future success," said Sipho Maseko, Telkom Chief Executive Officer.
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