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Solidarity outlines Telkom retrenchment plan

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 11 Jun 2015
Telkom plans to cut its workforce by 4 400 jobs, while a further 3 400 employees will be transferred to other companies.
Telkom plans to cut its workforce by 4 400 jobs, while a further 3 400 employees will be transferred to other companies.

Trade union Solidarity says its crisis task team, which has been set up to deal with the Telkom retrenchments, today announced an emergency plan to deal with the process.

"The plan includes a legal strategy, research, support given to Solidarity members at Telkom and financial advice. The task team includes top lawyers of the trade union, senior researchers, counsellors and financial advisors," the union notes.

In terms of the legal strategy, Solidarity says it instructed its legal team to question the legality of the process Telkom is following in respect of the planned retrenchments. Section 189 and 189A of the Labour Relations Act stipulate that when staff reductions are being planned, employers have to first consult extensively with trade unions, Solidarity points out.

"By rights, the process has to start with a formal section 189 notice. The final number of employees to be retrenched, when their services would be terminated and what alternatives to retrenchment could be considered are only decided during the consultation process.

"Telkom has already decided exactly how many people have to pack their bags by 2018, when they have to leave the company, and has started to offer voluntary severance packages to employees before employees have been made aware of all of these alternatives."

In the dark

By keeping employees in the dark, says Solidarity, Telkom is trying to force employees to make use of the voluntary severance package option. It adds employees don't have enough time to consider the full extent of the financial impact of their decision, because the packages are only available for a short period of time before the formal retrenchment process is to commence. "We, therefore, contend the process is procedurally incorrect and we are considering legal action to force Telkom to follow the correct process."

The trade union says it has, on many occasions, requested Telkom to provide more information about its planned new business model so that its viability and impact on employees could be examined in depth.

"Telkom has now instituted work forum sessions to provide more information. We, therefore, contend Telkom's process is premature and that the work forums should first be given the opportunity to complete their work so that the information emanating from the forums can be analysed and to afford us the opportunity to propose meaningful alternatives during a formal consultation process."

Solidarity says it is also concerned Telkom is not doing enough to keep its employees fully informed of the financial implications its plans will have on individuals.

"Telkom is only focusing on saving costs and it is prepared to sacrifice its employees' financial future to achieve this. Solidarity has instructed its financial advisors to compile information sheets that will outline the advantages, disadvantages and impact of the options currently on the table."

Emotional impact

Solidarity notes the current staff reduction process at Telkom has an enormous emotional impact on its members.

"Telkom does not show any empathy for its employees, nor does it provide sufficient resources to support employees in dealing with the trauma they are currently experiencing. Solidarity has decided to arrange information sessions where counsellors will perform basic trauma counselling with groups of employees. Individuals who need further help will be referred to appropriate people."

Earlier this week, Telkom announced it was planning to cut its workforce by shedding 4 400 employees through voluntary severance packages and voluntary early retirement packages. Earlier this year, 724 employees accepted packages.

"If this new target is not met, forced retrenchments will follow in July to reach the desired number. Another 3 400 permanent employees will be transferred to other companies," says Solidarity.

"This is in addition to the 1 170 employees who have already been transferred through section 197 business transfer processes as several business portfolios within the company had already been outsourced."

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