Fixed-line operator Telkom and three trade unions are set to face off today in a last-ditch attempt to stave off a strike that could see 15 000 Telkom employees down tools from next Thursday.
The Communications Workers Union (CWU), the South African Communications Union (SACU) and Solidarity have been locked in wage negotiations with Telkom for more than five months.
While the unions have lowered their original wage increase demands from 10% for higher-paid employees and 12% for lower-paid employees to 7.5% and 8%, respectively, Telkom's final offer is still below the minimum increase the unions will accept.
If the telecoms operator does not meet the unions' expectations this morning, a strike certificate will be issued by the Commission for Conciliation, Mediation and Arbitration (CCMA), which will allow unions to ask 15 000 Telkom employees if they want to down tools next Thursday. Collectively, the unions represent about 70% of Telkom's workforce.
The operator has proposed an increase of 5% for the period between April and September this year, and an additional percentage point increase for the period October 2011 to March 2012.
Telkom also offered an increase of inflation plus one percentage point for next year. Both offers were rejected by the unions.
According to a joint statement, the parties will meet at the CCMA for one last time today. This meeting follows two other consultations at the commission.
Dragging on
The current round of negotiations relate to a two-year wage deal, which was meant to be implemented on 1 April. Telkom's initial offer was 4.5%, which it later improved to 5%.
After negotiations deadlocked, the CCMA intervened in a bid to find a solution to the impasse. Earlier this month, the commission told Telkom its offer was not reasonable, and sent it back to get board approval for an offer of between 7.5% and 8%.
Subsequently, Telkom reverted with an offer of a 5% increase for the period April to September this year, and an additional percentage point increase for the period between October 2011 and March 2012.
An increase of inflation plus a percentage point was offered for 2012. All three unions rejected the offers.
Not good enough
SACU president Michael Hare says the unions will settle for nothing less than 7.5% for higher paid workers and 8% for lower paid staff members. He expects Telkom to increase its offer to avert a strike, as a certificate was meant to be issued last Thursday.
Hare explains that Telkom has requested this morning's meeting to meet with unions one last time. He says all three unions will strike next week if Telkom does not offer what the unions want.
If the workers down tools, “it will definitely be a big problem”, says Hare. He has previously warned that a strike will have a crippling effect on SA's economy, as Telkom is the country's communications backbone.
CWU lead negotiator Toto Ntetho has previously said a strike would have a negative effect on SA's communications infrastructure, as Telkom also provides a backbone for mobile operators. Ntetho was not available to comment this morning.
Telkom was not immediately available to comment. However, Telkom's executive for employee relations, Meshack Dlamini, has previously said the operator “has contingency measures in place to minimise the potential effect of industrial action”.
An August 2009 strike, when 2 000 staff members embarked on industrial action, saw customer service faults increase 30%, and sabotage to the network cost Telkom millions of rands.
Telkom lost 18 “man days” last year when 2 241 staff participated in a strike in the run-up to the 2010 Soccer World Cup.
The operator has been under pressure to trim its cost base as revenue from fixed-lines continues to dwindle. In June, the company said a key priority was to “aggressively tackle the cost conundrum” for which it will need the support of labour. “Telkom is firmly committed to reducing its cost base,” it said.
In its annual report, it warns the major risk associated with keeping costs under control and in line with inflation is “our negotiations with labour unions over salary increases”.
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