As Telkom and its three recognised unions meet in one last bid to settle a months-long wage dispute, the four parties are still at odds, the unions do not have a common goal, and the second-largest labour body is set to ask for a strike certificate.
The parties have been in talks for several months, but despite meetings at the Commission for Conciliation, Mediation and Arbitration - where they are set to reconvene today - there has been no headway.
The largest union - the Communication Workers Union (CWU) - seems set to accept Telkom's offer, while the South African Communications Union (SACU), the second-biggest staff representative body, will ask for a strike certificate. Solidarity is prepared to give today's meeting "a go" before contemplating whether to ask for a strike certificate.
Telkom and the unions have been in wage talks since March and have gone several rounds without being able to reach a settlement. Two years ago, a threatened strike was averted by a last-minute offer from Telkom, which brought in a two-year deal that ended at the end of March.
At odds
At the heart of the dispute is a wrangle over a wage gap, which should have been sorted out a few years ago. Telkom previously indicated its 6%-a-year offer, for the next three years, would be used to narrow the gap, but this would be at the unions' discretion. Inflation is 5.9%.
The company then reversed that position, before putting it back on the table in the latest offer. This has appeased the CWU, but irked SACU, which will not accept the offer unless the salary disparity aspect is removed.
CWU spokesman Dennis Morobe says the problem is that unions do not see eye-to-eye, which makes it difficult to resolve the impasse. He says five of the nine provinces have agreed to the proposal with some minor changes as "the issue of disparity has been dealt with once and for all".
Morobe says this will mean that most of its members benefit and he hopes sanity prevails and leads to a conclusion today. CWU represents 38% of Telkom's 20 000-odd workforce, while the other two unions combined have 35%, with SACU being the second-largest body - 13 998 of Telkom's bargaining unit employees were unionised as at 30 September 2012.
Last chance
SACU president Michael Hare says today's meeting is "make or break" and he doubts its members will accept the offer, making a strike seem likely. "We're just following process now, that's all."
Hare says if Telkom removes the bid to narrow the wage gap, the union will settle. "It's entirely in their hands now."
Telkom was not able to comment on the unions' statements.
Solidarity spokesman Marius Croucamp says the union is prepared to see whether today's meeting leads to a settlement, but if the dispute is not resolved, there is a possibility that a strike certificate will be issued.
The offer Telkom has put on the table is not acceptable to Solidarity's members, as it amounts to a long-term salary freeze, says Croucamp. Because it will be scaled, the offer will result in some people only having their salary increased by 2%, he explains. "That's damn scary."
Change afoot
Meanwhile, Telkom's voluntary retrenchment and early retirement process, announced in March, continues. The group is offering voluntary severance and early retirement packages from 15 March to 31 August, before embarking on a retrenchment process, if necessary, in a bid to cut costs.
In the year to March, operating expenses increased at a lower level than inflation, at 2.2%, to R32 billion. Telkom is also working on a new strategy that may see a split between its wholesale and retail units.
It has already agreed to a functional - pricing - division between the two with the Competition Commission, in an agreement that will settle a series of complaints lodged against SA's fixed-line incumbent from 2005 to 2007 by Internet service providers (ISPs).
The agreement, which includes a R200 million fine, came after Telkom admitted to squeezing the margins of tier one ISPs. It has to be agreed to by the Competition Tribunal.
Recently-appointed CEO Sipho Maseko says a new strategy for Telkom will start being unveiled in about six months or so, and the group will begin making announcements as soon as each puzzle piece becomes clear.
Maseko will define the strategy, which will be deliberated by the board, and then shared with stockholders, including all the options and Telkom's preferred way forward. Shareholder input will be taken into account.
Share