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Court showdown as MTN, CWU face off

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 26 Aug 2016
MTN intends to oppose CWU's court application over the telco's outsourcing plans.
MTN intends to oppose CWU's court application over the telco's outsourcing plans.

MTN and labour body, the Communication Workers Union, are heading to court over the telco's plans to outsource some of its call centre facilities.

SA's second biggest mobile operator says the outsourcing move was made "in a bid to optimise its operations and enhance customer experience".

Following the decision, earlier this month CWU said a lot more negotiation needed to happen before the telco executed its plans. Amid the impasse, the union also said an industrial action was looming at MTN over its outsourcing plans as well as a previous agreement to convert temporary staff into permanent roles.

MTN says it will adopt a hybrid outsource model which will result in it retaining some call centre facilities while others are outsourced to a third-party vendor.

The telco says it has commenced the process of engaging with employees and unions regarding its outsourcing plans in line with Section 197 of the Labour Relations Act, and will work closely with all stakeholders during this change. It expects the outsourcing process to be completed by September.

The company says the adoption of the hybrid outsource model is aimed at optimising MTN's operations and enhancing customer experience. The finalisation of this commercial undertaking will enable MTN to streamline its operations and focus on its core competencies, improve its ability to offer its customers a better value proposition and reduce operational costs, it adds.

The telecoms operator says the outsource partners have a sound financial track record and "an impeccable reputation in the call centre industry", having provided services to a number of companies in the retail, telecommunications and financial services sectors.

"The process is still ongoing, and we are encouraged by the participation of our employees thus far," says Nhlanhla Qwabe, chief human resources officer at MTN SA.

"MTN can confirm the Communication Workers Union has applied to court for an interdict against MTN. The matter is currently set down to be heard on 31 August. MTN intends to oppose the application through the normal court process," Qwabe says.

Speaking to ITWeb this morning, Aubrey Tshabalala, CWU general secretary, said the labour body sees MTN's move to outsource the call centre as unlawful.

"We have a long-standing agreement with MTN that it should change the call centre workers from being temporary employees to permanent," he said. "MTN is avoiding the agreement by trying to outsource its call centres. MTN is also undermining the role the workers have played in many years to make what MTN is today."

He expressed confidence that the courts will stop MTN's plans. However, he said going to court was only one of the options the CWU was taking.

"We can't rely on the courts alone. If need be, we will also go to the streets to strike over this. We just need to exhaust all the channels for now," Tshabalala said.

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