Telkom raises wage offer

By Candice Jones for Telkom
Johannesburg, 04 Aug 2008

The South African Communications Union (SACU) and Communication Workers Union (CWU) have come to a provisional agreement with Telkom in the ongoing wage dispute.

The company called the unions back to the negotiating table at the weekend to propose a higher offer of an 11% wage increase, backdated to April. It has also proposed an additional 0.5%, starting 1 October. The two increases represent a total of 11.5%, which is the minimum increase the unions would accept.

SACU and CWU members are currently engaged in stay-away action, after initial talks with Telkom failed to produce the outcome the unions had hoped for. "We are pleased with the response of our members," says Jannie Volschenk, SACU deputy general-secretary.

According to his figures, around 10 000 members participated in Friday's action, and the general "no overtime" stay-away over the weekend. "That represents 70% of members of the two unions," he adds.

However, Telkom says only 2501 employees took part in the planned industrial action. Telkom says the initial offer to the unions was an increase of 6.5%, an amount agreed to in a three-year substantive agreement signed in 2006 by the utility and the unions.

"This agreement also made provision for the re-opening of substantive negotiations, which was triggered, inter-alia, by an increase in the CPIX," says Meshack Dlamini, executive for employee relations.

Telkom subsequently increased the offer to 10.5%, which was, at the time, a figure that matched the inflation rate. Trade union Solidarity, which was supposed to join in the current action, decided to accept Telkom's 10.5% offer in late July.

SACU and CWU are pleased with Telkom's new offer, but say the deal still needs to be accepted by members. While members decide whether to accept or reject the agreement, the industrial action will continue as planned.