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MTN strike damages union's credibility

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 18 Jun 2015
The CWU should consider that striking is not always the most effective way to achieve what it wants, says an analyst.
The CWU should consider that striking is not always the most effective way to achieve what it wants, says an analyst.

The protracted MTN strike - over wage hikes and bonus payouts - has dented the Communication Workers Union's (CWU's) credibility more than it has actually achieved anything for its members, say market analysts.

Ovum analyst Richard Hurst says the union has most likely damaged its credibility in the eyes of some of the biggest employers in the telecommunications sector, namely Vodacom, MTN and Telkom. "You can understand what they were trying to achieve, but perhaps they tried to use a hammer to kill an ant.

"They probably could have achieved their goal using a slightly softer touch," says Hurst, adding the union's hard-line approach has gotten people's backs up against the wall.

The CWU embarked on strike action on 2 May after talks between it and MTN stalled over 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.

While the union insists the strike is still in full swing, MTN says it has all but fizzled out, with only a handful of CWU members still protesting outside some of the mobile operator's facilities.

MTN SA chief HR officer Themba Nyathi says virtually all MTN employees have returned to work. He adds many of the unionised employees are unhappy with the actions of the CWU and have requested to have their union memberships cancelled.

Weak support

Independent analyst Spiwe Chireka says the lack of support for the strike among MTN employees is indicative of the union not having significant representation within the company. "This has allowed MTN to take a pretty hard stance against the union.

"As an employee, I would approach the situation from the point of view of asking whether strike action has ever been effective at MTN in the past, and whether it has ever truly achieved anything."

Chireka argues the lack of support for the strike has put the CWU in a very weak position and agrees it has damaged the union's credibility. "The CWU now runs the of not being taken seriously by its members, as well as by employers in the sector. So, unfortunately, this could be an indication of how the union will be treated in the future."

MTN has also been severely critical of the CWU, saying the union does not seem to want an amicable and swift resolution to the dispute, and has rejected the company's proposal to engage in independent arbitration to break the deadlock.

However, CWU president Clyde Mervin previously explained the union rejected MTN's proposal for independent arbitration because the process would require the union to abandon the strike, while "we believe in our right to strike".

But Chireka says the union should look at the bigger picture. "Yes, it is their right to strike, but given the fact that the strike has been ineffectual, perhaps they should consider other options. While the union might be concerned about abandoning the strike and how this would affect its credibility, perhaps it needs to consider that striking is not always the most effective way to achieve what it wants. Perhaps it is in their interest to accept the arbitration offer."

No sympathy

Meanwhile, Mervin has stated the union will continue with industrial action until MTN bows to its demands. However, a threatened sympathy strike, which was expected to bring some 10 000 additional union members into the fold, has failed to materialise.

While the CWU says it has already served notice on members at Sentech and Telkom to join the strike, it is understood Sentech employees will not join the industrial action, as the company is not "linked" to MTN.

The union has not given any updates on other sectors joining the strike, but Hurst says it would be very difficult for the CWU to gain support from other sectors. "It will be very hard for the CWU to get sympathy from other unions and other sectors, where the scenarios are vastly different."

Chireka agrees a sympathy strike is unlikely to materialise, as the union is struggling to get support for the strike from its members within MTN.

Meanwhile, the union has increasingly been avoiding media queries as the strike continues. Despite promising to speak to ITWeb, Mervin has been avoiding answering questions about the strike. Numerous attempts to reach him have been unsuccessful.

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