Allied Technologies' Autopage business has remained silent on possible retrenchments revealed by trade union Solidarity.
On Tuesday, the union received an e-mail from one of its members noting that a retrenchment process was about to begin at the telecoms reseller. In a media statement, Solidarity says the company's explanation in the e-mail indicated it was facing economic pressures.
Altech is not the only telco to face trouble, with Telkom and MTN also facing the possibility of staff cutbacks.
“Solidarity members employed by Autopage Cellular are worried about the restructuring of the company, because it could lead to a large number of retrenchments. We realise that the telecommunication industry is under pressure, but alternatives simply have to be found,” says Solidarity spokesman Jaco Kleynhans.
Despite ITWeb's repeated requests for information, Altech Autopage has not confirmed the retrenchments, nor indicated how many employees will be affected by the process. When the actual process will begin is also still unknown.
However, Kleynhans says the union met with the company yesterday to ensure it will be part of the consultation process. “This meeting was simply to make sure that we can be involved to protect our members,” he adds.
With the formal e-mails sent, a 60-day consultation with employees is now expected to follow, according to labour law. Kleynhans says Autopage has assured the union it is investigating alternative growth opportunities; however, he is not convinced it will be enough. “It appears that it will be in vain.
“It's just terrible to be unsure of your job security during Christmas. Not knowing if you will be going back to work in the New Year is not a good feeling,” he adds.
The planned retrenchments will come as a surprise to many industry watchers, since the company's performance, reported as part of parent company Altron's financials recently, were strong. Altech, as a group, accounts for 39% of Altron's revenue and 65% of its operating profit.
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