Sentech has signed a wage agreement with the Communication Workers Union (CWU), guaranteeing an across-the-board wage increase. It also provides that no retrenchments will be made for at least a year.
This follows a company restructuring completed at the end of February, which affected six senior executives.
The wage agreement, valid from 1 March 2007 to 28 February 2008, will see employees receive a 6% salary increase, according to a document in ITWeb`s possession.
"It is important to note that Sentech is offering the 6% wage increase despite the fact that it is operating at a lost and has limited funding from the Department of Communications," says CWU spokesman Mfanafuthi Sithebe.
Sithebe adds that skills development remains central to the wage agreement and Sentech has undertaken to decrease the number of private contractors it uses. Sentech and the CWU have also agreed to address wage anomalies within the state-owned institution.
Job cuts over
Earlier this month, Sentech media relations manager Pranill Ramchander said Sentech`s plan to cut six of its senior management positions was almost complete, and there would be no further cuts.
He said four of the individuals whose positions were being cut accepted retrenchment packages and one resigned, despite the fact the company offered all parties alternative positions. At the time, the sixth employee was still in consultation with Sentech, he said.
Ramchander would not disclose how much it cost Sentech to retrench the executives. However, he reiterated the restructuring would not affect any other staff members, and business processes or services would not be disrupted.
Last week, Sentech presented its business plan to the Parliamentary Portfolio Committee on Communications. The cash-strapped state-owned entity asked to be allowed to seek project funding from other sources in addition to its government funding.
The CWU is the only union that has a recognition agreement with Sentech.
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