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Union braces for next round of job cuts

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 04 Nov 2014
While managerial-level retrenchments have been finalised at Telkom and MTN, Solidarity is preparing for further job losses in the first quarter next year.
While managerial-level retrenchments have been finalised at Telkom and MTN, Solidarity is preparing for further job losses in the first quarter next year.

Trade union Solidarity says the first round of retrenchments in the telecoms sector has largely been completed, but warns workers should brace themselves for more job losses in the first quarter of next year.

Marius Croucamp, Solidarity's head of the communication industry, says the placement of 104 Telkom employees - who received notices on 1 October - has been finalised. Of these, 96 employees have not been placed, but none are 100% matched to the 168 managerial posts that have been created under the new structure.

"We are trying our best to place them. We are looking at any higher percentage matches and seeing whether these people could be upskilled. But it's not easy," says Croucamp, adding the union has until the end of the week to finalise this process.

He explains, in a letter to Solidarity, Telkom stated trade unions may assist their members who have still not been placed to apply for alternative positions in the new proposed structures, depending on their skills and experience. These applications have to be submitted on or before 7 November.

Croucamp says Solidarity is going to have further discussions with Telkom during the coming month regarding the placements. "We want to see to it that all our members are placed in alternative positions and if they are not placed because of inadequate qualifications or training, that Telkom gives them the opportunity to receive the necessary training."

MTN retrenchments finalised

Solidarity says the placement process regarding MTN's retrenchments has already been finalised. In August, the country's second-largest mobile operator issued section 189 notices to employees, stating it intends to retrench up to 847 members of staff in managerial positions.

"Most of our members, who are affected by the retrenchments, have accepted voluntary retrenchment packages, while some members have been placed in alternative positions. Some of our members who have applied for alternative positions are, however, still in the thick of the interviewing process.

"We are still closely involved in the process and will assist members where needed," Croucamp says, adding the process should be concluded by the end of November.

The company has cited poor returns and slow growth as the reasons for the rightsizing process.

Meanwhile, Croucamp says eight Solidarity members at Cell C have already applied for alternative positions, although some are still waiting for feedback from management. Moreover, 23 have already accepted provisional severance packages.

Last month, Cell C gave notice to employees, saying as many as 190 of its 1 458 staff members may face retrenchment, as the company restructures. "Cell C is following a cold and clinical approach as far as the retrenchment process is concerned, but so far, it has acted according to the letter of the law," Croucamp explains.

He says the union expects to see further retrenchments, especially at Telkom and MTN, which have concluded rightsizing at managerial level. "We expect that restructuring below this level will now follow, as newly-placed managers move into their new positions.

"This is a terrible time for the sector, especially as it was a job creation area earmarked by government recently. It has been anything but."

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