Johannesburg, 10 Feb 2011
Fixed-line operator Telkom will enter into another round of voluntary severance packages (VSPs) and voluntary early retirement packages (VERPs), with non-management employees, as part of its 2011 cost-cutting strategy.
This follows a similar process conducted last year, in which 186 managers opted for the packages, costing the company R144 million in the half-year to September.
Among those who went for the package are chief of strategy Naas Fourie, MD of Telkom International Thami Msimango, head of procurement Stafford Augustine, and group executive for network provisioning Marius Mostert.
Yesterday, the South African Communication Union (SACU) informed its constituency that the packages would once again be made available to Telkom employees.
According to the union, the packages will be available for a limited period of 14 days, from 21 February to 18 March.
Should employees opt to leave before 31 March, they will receive a full six-month cash benefit, explains SACU.
Employees opting to leave after 31 March, but before 30 April, will receive four months' cash benefit; however, this would be calculated on the increased and newly negotiated salaries.
The packages will be calculated according to the number of years served at the company and will range from 12 weeks to 53.5 weeks salary payout.
According to SACU, Telkom indicated that employees opting for this package will be deemed as being retrenched and would, among others, be allowed to claim unemployment for the legislative period.
Telkom confirmed it had met with the unions and will re-offer the packages. “Following the 2010 offering of VSPs and VERPs to managerial employees, Telkom met with organised labour [on Tuesday, 8 February 2011], to reintroduce this facility.”
“Employees who form part of the bargaining unit are primarily represented by organised labour. The three recognised trade unions - Communication Workers Union, South African Communication Union and Solidarity - were formally consulted under the auspices of the company forum, with the understanding that they would revert to their constituencies with Telkom's proposal and report back at the specially convened follow-up meeting of the company forum,” stated the company.
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