Stock shortages at some MTN stores in the Johannesburg area are mainly due to the mobile operator transitioning to a new distribution model, rather than a result of the ongoing strike, which started about three-and-a-half weeks ago.
According to media reports yesterday, customers looking to buy mobile phones had been turned away by some of MTN's shops, due to a supply shortage, reportedly caused by the strike by members of the Communication Workers Union (CWU).
However, MTN SA chief HR officer Themba Nyathi says this is not accurate, as stock shortages at four stores this week were due to the company outsourcing its non-core operations, including its distribution process.
"The strike has had a slight impact, like in the case where striking workers blocked the entrance to our Midrand warehouse. But the stock shortage was mainly due to a new distribution model that we started implementing just before the strike started."
Nyathi points out the stock shortage will be cleared up within the next 18 hours. It is understood the new distribution process is likely to be more cost-efficient, less labour-intensive and better automated. While MTN had planned to introduce its new distribution model over a three-month period, the company is now fast-tracking its introduction as a result of the protracted strike.
"At the end of the day, the strike will have a positive impact in the sense that we are forced to rush the changeover to the new model and the transition can happen sooner."
Furthermore, he says, the operator is on track with the outsourcing of the management of its MTN-branded stores and call centres.
Failed to materialise
Nyathi also says the more than 300 contract workers, who were dismissed last week due to their illegal participation in the CWU strike, have been replaced.
The employees - mainly from MTN's retail and call centre divisions - were fired by their respective labour brokerages, as they were not directly employed by MTN and were not covered by the strike certificate obtained by the CWU from the Commission for Conciliation, Mediation and Arbitration.
The termination of these employees did not have a great impact on MTN's operations, says Nyathi, and their replacements are undergoing training. "Most of the new guys should be starting tomorrow and Monday."
Meanwhile, the CWU's secondary strike, which the union was initially planning to launch this week, has failed to materialise. President Clyde Mervin says the union is holding talks with its provincial branches to mobilise additional members to join the strike against MTN. He says more details should become available on Monday.
The union has already served notice to Telkom and Sentech, informing them CWU members would be called upon to join the strike. However, it is not yet clear when this will happen, as the union is still meeting with these members. "We will have an update on Monday," says Mervin.
The CWU initially stated a secondary strike would see an additional 10 000 members from other sectors joining the strike, but MTN has dismissed this as "hot air".
The union embarked on strike action three weeks ago, after talks between the union and MTN stalled over the issues of annual pay hikes and bonus payouts. The union is demanding a 12% bonus pay and a 10% salary hike, but the operator says it will not budge from its final proposal. MTN is offering a 4% bonus payout in December 2015 and a second payment of 8.33% in March 2016.
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