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Telkom can afford it, says Solidarity


Johannesburg, 18 Oct 2007

Solidarity wants to use ex-Telkom CEO Papi Molotsane`s salary to prove the company can afford to restructure workers` wages.

The union has been in an ongoing wage dispute regarding Telkom`s interpretation of a two-year agreement, which was signed in April 2006. Union spokesman Jaco Kleynhans says the negotiations with the company have broken down.

"Telkom has flatly stated it will not restructure workers` salaries. It says a lack of finances is the reason workers are not being paid what is due to them - and this while millions are available for Molotsane`s salary," he says.

The agreement guaranteed an average salary increase of 6.5% for 2007 to staff members represented by the Communication Workers Union and Solidarity. "Telkom`s interpretation of this agreement has deprived our workers of millions owed to them," says Kleynhans.

No excuse

Yesterday, Solidarity asked Telkom to disclose the full remuneration package of its former chief executive after media reports that Moletsane earned more than R9.5 million for his 19 months in the job.

"We won`t accept the excuse that the company cannot afford to pay, while others are getting paid millions."

As a listed company, Telkom must disclose salary structures, including benefits and bonus information, in its annual report.

According to the latest report, Molotsane received R3 925 987 in 2007, which includes R1 653 202 in fringe and other benefits.

This did not include his performance bonuses and share options for the 2007 financial year ended 31 March, or his severance package after his unexpected resignation in April.

The annual report states the performance bonus and share options for 2007 were in the process of being finalised and were, therefore, not made public.

Telkom says the severance package will be included in the 2008 annual report.

The report also lists what Molotsane received in the 2006 financial year, which amounted to R5 602 995, and included a performance bonus of R3 442 573, as well as benefits of R909 675. The 20F report submitted to the New York Stock Exchange shows he was allocated 11 457 ordinary shares in 2006.

Taking it further

Meanwhile, Solidarity has referred the wage dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA). "It looks like there is no way that we can continue talks, since Telkom has flatly said there is no way it can restructure the wage agreement," says Kleynhans.

In an earlier statement to ITWeb, Kleynhans said he was confident the CCMA would uphold the union`s claim.

Lulu Letlape, group executive for corporate communication at Telkom, says: "Although Solidarity has referred the matter to the CCMA, it is still engaged with Telkom in working towards an amicable resolution."

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Wage rage at Telkom
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