Solidarity calls for Telkom transparency

The Solidarity trade union is seeking an urgent meeting with Telkom to discuss the operator`s sale of its 50% stake in local mobile giant Vodacom.

Solidarity spokesman Jaco Kleynhans called for more transparency from Telkom, saying the company had failed to consult with the union about the sale of its mobile interests.

Last week, Telkom announced a R22.5 billion deal in which Vodacom co-owner UK mobile provider Vodafone would purchase an additional 15% of Vodacom, while Telkom`s remaining 35% in Vodacom would be unbundled to shareholders.

Kleynhans says the union is worried that Telkom has shed its interest in a profitable operation. "We need to know what effect this will have on Telkom - for instance, will it mean lower profits?"

Solidarity, he adds, feels "very strongly" about helping to move SA`s telecommunications sector forward and remains supportive of Telkom, but says the fixed-line operator has not been as open with the union as it should have been.

"Telkom held a 50% stake in the biggest mobile provider in the country and we need to understand why it chose to sell it."

Kleynhans also says Solidarity has questions about how the sale will affect Telkom`s capability management project, which will see 90% of the utility`s operations outsourced. This project is expected to affect 19 000 employees and save the company an estimated R1.3 billion a year. Telkom recently imposed an April 2009 deadline for the implementation of this initiative.

"We are still in negotiations about Telkom`s outsourcing deal and we have indicated that we are supportive of Telkom, while - at the same time - ensuring there is job security for our members. At the moment, talks are at a critical point.

"As far as we are concerned, we have done our part. But we need more transparency from Telkom and that is why we have requested a meeting with the CEO."

The Communication Workers Union (CWU) said this morning it is still evaluating the deal and would not be able to comment at this stage. Solidarity and the CWU are the two biggest labour organisations within Telkom.