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MTN: Something bigger behind strike

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 04 Jun 2015
The union's refusal to agree to independent arbitration is strange, says MTN SA human resources chief Themba Nyathi.
The union's refusal to agree to independent arbitration is strange, says MTN SA human resources chief Themba Nyathi.

Mobile operator MTN believes there is something more to the strike than just wage hikes and bonus percentages, saying it hopes an independent arbitration process will reveal the hidden issues behind the protracted industrial action.

However, the Communication Workers Union (CWU) has declined the company's arbitration offer, says MTN, effectively creating a stalemate in the process.

MTN SA human resources chief Themba Nyathi says the company would like a quick resolution to the strike, adding most of MTN staff are back at work. This morning, he says, the operator recorded a 94% attendance rate.

"We have asked the union to remove protestors from blockading entrances to some of our facilities. Very few people are still on strike and we feel the ongoing industrial action is unfair to our employees to whom the no work, no pay principle applies, as well as to our customers," Nyathi explains.

He says MTN has urged the CWU to agree to involve an independent arbitrator from either the High Court, the Labour Court, or the Commission for Conciliation, Mediation and Arbitration. However, Nyathi says the union has so far refused, and instead indicated it would like to go back to mediation.

"It's really strange, as the strike should have been the last resort. When mediation failed, a strike certificate was issued, but now the union wants to return to mediation," Nyathi states.

But mediation is unlikely to succeed, he says, as talks with the union have so far yielded no results. "We're not really sure where to go from here. All our differences have been narrowed down, so we really don't think it's about the figures. Maybe there is something bigger, and perhaps it will come out during arbitration, when the union agrees to it," Nyathi says.

MTN put forward its position last week and will not budge from its final proposal, maintaining its offer is better than what the CWU initially demanded. MTN is offering a 4% bonus payout in December 2015 and a second payment of 8.33% in March 2016.

The strike, which started two weeks ago, has led to the closure of MTN's call centres and disrupted other services centres, including stores and the high-value repair centre. The strike is being led by the CWU, which initially wanted a 10% salary hike, as well as an 8% bonus.

CWU president Clyde Mervin could not be reached for comment this morning. However, earlier this week, he accused MTN of downplaying the effects of the strike and of lying about the high employee attendance rate. The industrial action, he said, would continue in full force across the country.

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