CWU, Telkom outline wage deal

Johannesburg, 26 Apr 2006

The protracted wage dispute between Telkom and the Communications Workers Union (CWU) is over, with the signing of a three-year wage agreement today. The agreement is effective from 1 March 2006 to 31 March 2009.

The deal offers union members a guaranteed average salary increase of 6.25%. In terms of profit-sharing, supervisors will receive a lump sum of R15 000, skilled technical people get R12 000, while unskilled workers are allocated R10 000. Profit-sharing will be based on achieving financial and performance drivers set by management, the agreement says.

Mfanafuthi Sithebe, head of communications at CWU, says this agreement is closest to what the union demanded.

"The agreement addresses major disparities, which include allocation of shares and work conditions," he says.

Sithebe says the agreement also addresses the issue of job security, as Telkom has undertaken that no retrenchments would take place this year.

"If there are to be any retrenchments, they will only be effective as of March next year," he says.

SACU not impressed

Jannie Volschenk, deputy general secretary of the South African Communications Union (SACU), is unimpressed by the new deal.

"The agreement is not very different from what we signed in terms of key and essential areas, such as salary increases and gain-sharing," he says.

The value of salary increases and the total package concept regarding housing and medical aid remains unchanged, Volschenk says.

"We are going through the document looking specifically for information that shows potential benefits for our members," he says.

The new agreement includes CWU, Solidarity and SACU members, as well as non-unionised employees whose grades fall within the bargaining unit.

Coalition

CWU and Telkom have also signed a memorandum of understanding (MOU), which provides for the formation of the Coalition of Telkom Unions.

Solidarity spokesman Jaco Klenyhans says this MOU is good news, as it allows all the unions to work together and fight the same battles.

"This also puts us in the position to build a better relationship with Telkom in terms of addressing the needs of Telkom workers."

Telkom`s group executive for human resources, Charlotte Mokoena, expressed relief at the signing of the agreement.

"The interests and welfare of all Telkom employees is of paramount interest to the company and we`re relieved that our entire workforce will now be able to resume their duties as from today," she says.