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MTN looks to arbitration

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 01 Jun 2015
MTN SA will abide by an arbitration decision, says CEO Ahmad Farroukh.
MTN SA will abide by an arbitration decision, says CEO Ahmad Farroukh.

As a strike by MTN call centre staff heads into its 13th day, the cellular operator is suggesting it and the Communication Workers Union (CWU) enter into an arbitration process.

MTN SA CEO Ahmad Farroukh today told a delegation representing the striking employees that a legally binding arbitration process is fair and can help put an end to the current industrial action.

The strike, which started almost two weeks ago, has led to the closure of MTN's call centres and disrupted other services centres, including retail stores and the high-value repair centre. The strike is being led by the CWU, which initially wanted a 10% salary hike, as well as an 8% bonus.

This morning, MTN SA human resources chief Themba Nyati said the company recorded a 97% attendance rate among its staff, with only about "five members" protesting outside its head office in Johannesburg.

Nyathi could not say whether this was an indication of the strike winding down, as the union came back with a revised proposal to the company last week - the details of which Nyathi says he cannot immediately comment on.

CWU president Clyde Mervin says the strike will continue in full force across the country, adding MTN should stop lying about the impact of the industrial action. "They must stop lying. Last week, they claimed to have a work attendance of 90%, this week it is 97%. The strike is not winding down, and workers are still fully behind the union in all provinces."

However, it appears that this afternoon's meeting, set to discuss the union's latest proposal to MTN, was not successful.

Farroukh says an independent arbitration process "may be the only practical solution to this stalemate". He urged the CWU to accept its suggestion, adding: "As a law-abiding corporate citizen, MTN undertakes to be bound by the findings of the arbitration process and we will implement whatever judgement the arbitrator deems appropriate."

MTN adds it has not increased its offer, and is offering a 4% bonus payout in December 2015 and a second payment of 8.33% in March 2016. MTN maintains this offer exceeds the original staff demand for an 8% bonus payment.

"MTN remains committed to finding a speedy and amicable resolution to this impasse. We have an open door policy and we remain committed to constructively engage employees further on this matter in good faith," Farroukh notes.

Mervin was this morning not prepared to publicise the terms of its latest proposal to MTN until the union has consulted its members, which it was set to do prior to the meeting with MTN this afternoon.

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