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Telkom denies 10 000 field workers to face axe

By Staff writers
Johannesburg, 16 Feb 2015
Telkom says a Section 197 process has been initiated for staff impacted in four areas of its business.
Telkom says a Section 197 process has been initiated for staff impacted in four areas of its business.

Telkom has denied trade union Solidarity's claim that the next phase of its restructuring process, involving its "field force", would impact up to 10 000 employees, after it held a meeting with organised labour earlier today.

"This is not a correct reflection of the day's discussions. Today's meeting, which will be followed with the initiation of the formal consultation process, pertains only to the call centre, IT legacy systems, supply chain warehousing and the affected Telkom stores," says the company.

"The Telkom field force is currently not part of the discussions with organised labour.

"When Telkom initially embarked on its turnaround strategy, the company stated it would look at alternatives, such as joint ventures, to ensure job losses would be avoided and only used as a very final course of action.

"To this end, Telkom has completed a stringent procurement process and has identified external companies to undertake call centre operations, [and] the management of IT legacy systems, a company to undertake the management of Telkom warehouses in the supply chain area of the business, as well as a company to take over internal printing activities."

The fixed-line operator says a Section 197 process has been initiated for staff impacted in these areas of the business. These affected employees will be transferred to their new employers in the coming months.

"The official consultation process will begin on Friday this week, with more consultations to follow over the coming weeks. Affected staff have also been informed."

Telkom says it conducted detailed analyses of the viability of all the Telkom Direct Stores, adding the research has shown it is no longer viable to continue running some of the company's 95 stores. "It is clear that significant cost-efficiencies can be realised, by closing down these unviable stores.

"These affected employees have today been notified of the decision and, in terms of the Labour Relations Act, have been issued with Section 189 notices. Telkom will explore every option to place the affected employees impacted by this process in other areas of the business.

"Should such attempts be unsuccessful, some of the affected employees may unfortunately be retrenched."

The company says its restructuring process is an imperative for the survival of the business and to secure the long-term and sustainable growth of the company.

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