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Union, Telkom deadlock over outsourcing

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 01 Apr 2015
The Communication Workers Union does not want Telkom to outsource jobs.
The Communication Workers Union does not want Telkom to outsource jobs.

Talks between Telkom and its largest union - the Communication Workers Union (CWU) - have deadlocked over Telkom's plans to outsource staff.

Almost 1 300 employees are affected by Telkom's current phase of its restructuring process, which will see it outsource the functionality of its call centre, warehousing and IT legacy systems.

Solidarity and the South African Communications Union - the two other recognised unions at the telco - had asked Telkom to postpone the outsourcing move to the end of this month, and offer voluntary retrenchments and early retirement plans.

However, CWU rejected this proposal as it did not want to be seen in favour of outsourcing, and talks held to break the impasse, which continued yesterday, have been unsuccessful.

Telkom has identified WNS as its preferred partner to handle its line call centre operations, while Barloworld Logistics will undertake the management of 25 Telkom warehouses in the supply chain area of the business.

In addition, Telkom's IT legacy systems will be managed by ASAJE, and Bidvest has been identified to take over internal printing services, while Ingram Micro will control the supply chain in the retail area of the business. Telkom is also set to close 20 Telkom Direct stores, which have been underperforming, leading to about 100 job losses.

Going direct

Telkom adds, now that talks between it and CWU have deadlocked, it has extended the voluntary offer directly to the union's members.

Spokesman Jacqui O'Sullivan notes, while Telkom respects the right of its people to choose to be affiliated to a union, "we also know that union members are firstly Telkom employees". She says CWU members affected by the outsourcing have "made it very clear" they want to be able to choose a voluntary package.

"This has repeatedly been communicated by many of the affected employees to their Telkom line managers."

CWU, which has threatened strike action over the impasse, was not available to comment this morning. CWU general secretary Aubrey Tshabalala said yesterday the union wanted the outsourcing date extended so discussions with workers, lawyers and the company could continue.

Tshabalala said the union had not inked the deal because "we do not see any reason they should be outsourcing jobs; and secondly, the benefits vary and are worse off at the new companies". He cited the example of Bidvest not offering paid maternity leave.

Outsourcing processes such as Telkom's are regulated by the Labour Relations Act, which demands that staff be moved under substantially the same terms and conditions.

Telkom notes all CWU members can apply for voluntary packages, and that "deadlocked negotiations should not negatively impact the options available to our affected employees".

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