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MTN ups contingency plans

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 01 Jul 2015
The CWU embarked on strike action on 2 May after talks between it and MTN stalled over issues of annual pay hikes and bonus payouts.
The CWU embarked on strike action on 2 May after talks between it and MTN stalled over issues of annual pay hikes and bonus payouts.

MTN has upped its contingency plans in the wake of ongoing industrial action, to ensure "normal operations" are resumed.

The operator says, while the "majority of MTN staff who embarked on strike action have come back to work, the company has not entered into any agreement with the Communication Workers Union (CWU)".

Consequently, the strike action - initiated by CWU in May - has started to settle down, but has not come to an end.

MTN reiterates the "no work no pay" policy applies to those employees who are still on strike.

In terms of the service disruptions - particularly to the operator's call centres - caused by the strike, MTN says its contingency plans are working. It notes the customer call centre's operations are improving by the day and its distribution channels have reported fewer interruptions.

The protracted strike has been marred by violence and intimidation, prompting MTN to obtain an interdict barring striking employees from disrupting the company's normal operations and intimidating employees wanting to return to work.

The CWU embarked on strike action on 2 May after talks between it and MTN stalled over issues of annual pay hikes and bonus payouts. The union is demanding a 12% bonus pay and a 10% salary hike, but the operator says it will not budge from its final proposal. MTN is offering a 4% bonus payout in December 2015 and a second payment of 8.33% in March 2016.

In mid-June, Themba Nyathi, chief human resources officer of MTN SA, downplayed the magnitude of the month-old strike, saying "virtually everyone" had returned to work.

At the time, Nyathi said some union members were unhappy with the CWU, which promised the strike would not last longer than three days. "The union failed to deliver on its promises and has forced the members into a long strike."

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