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Union pledges war against MTN, Vodacom, Cell C

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 20 May 2015
MTN averted violence during this morning's strike outside its head office.
MTN averted violence during this morning's strike outside its head office.

This morning's strike action outside MTN's Johannesburg head office is the start of a wave of industrial action against SA's already battered mobile operators, the Communication Workers Union (CWU) pledges.

The protest against MTN began as a staff tiff as call centre agents were denied bonuses because the local operation did not meet its targets. However, it quickly escalated to a demand for a 10% salary increase, as well as a 16% bonus payout.

The CWU's umbrage escalated into a full-blown strike this morning, with MTN employees and other union members blockading the provider's main entrance at 14th Avenue, on the West Rand, for a few hours.

Chief human resources officer Themba Nyathi said this morning the CWU had bussed in external supporters, and blocked the entrance with dustbins, preventing other workers from gaining access.

Nyathi adds very few MTN staff actually went on strike, and the company was trying to prevent the issue escalating into violence this morning. He notes the CWU had shifted the goal posts, because it initially wanted an 8% guaranteed bonus for next year, which it then increased to 16% after MTN put 12% on the table.

In addition, Nyati says it is odd the CWU would be trying to negotiate salaries now when it is not a recognised union, and salaries were already determined in March. For a union to be recognised at MTN, it needs 30% of the staff to join it, and the CWU currently has 19%.

Head on

However, the CWU is determined to have MTN recognise it. President Clyde Mervin says the CWU has 3 000 members at MTN, and is demanding a meeting on Friday to get representation. He adds, should this be denied, it will go to the Commission for Conciliation, Mediation and Arbitration to demand organisational rights.

The Communication Workers Union allegedly bussed supporters to MTN for this morning's strike.
The Communication Workers Union allegedly bussed supporters to MTN for this morning's strike.

The union's dispute with MTN is just the beginning, says Mervin, as it will take the fight to the other cellphone operators. However, he denies additional CWU members were bussed in, saying these could have come from nearby MTN outlets. "Once we are done with MTN, we will look at Vodacom and Cell C."

Mervin says the union is targeting signing up members at the other operators because they fall under its scope. He notes companies enter restructuring phases "before the unions get in" but this time "MTN was caught off guard".

"We are taking them head on; we call it a head-on collision."

Vodacom spokesman Richard Boorman says the operator has not had any rumblings of industrial action, while Cell C could not immediately be reached for comment this morning. Vodacom is also not unionised, with only 13% of its staff belonging to the CWU, the only union with any significant membership.

Nefarious intentions

Ovum analyst Richard Hurst says the CWU's actions this morning "could actually unzip further industrial action". He says Vodacom, which has not been cutting jobs, could try and head off any protest action, but MTN tried and failed.

Striking workers blocked off the entrance to MTN's main campus this morning.
Striking workers blocked off the entrance to MTN's main campus this morning.

Hurst notes MTN is a "high profile" company and the restructuring would make staff more likely to unionise. He suspects the CWU could be trying to send a message to the sector about job cuts and vying to gain recognition. SA's mobile operators have been under margin pressure as revenue is flat, and have resorted to a range of cost-cutting initiatives to bolster their bottom lines.

However, should the operators become unionised, it will place a different dynamic on the industry, which has generally been fairly nimble, says Hurst. "The last thing you want is union action impacting your operations."

ICT commentator Adrian Schofield adds the CWU is flexing its muscles and is trying to show it has influence over the broader sector. He says the union has leveraged the MTN bonuses dispute into a broader confrontation. "It's probably just unfortunate that MTN is the first target."

Schofield says the union needs to be seen to be fighting for its members and grow its base "never mind the potential damage to MTN's customer base and the broader economy". He "desperately" hopes the issue does not spiral to Vodacom as SA does not need more forceful confrontations.

* Photographs by Dylan Mohlala

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