Yet another round of wage talks between unions and Telkom has failed to yield an agreement, as the biggest union is not budging, despite a slightly better offer from the telecoms company.
Solidarity spokesman Marius Croucamp says Telkom made a new offer in that the company said it was prepared to renegotiate the three-year proposal if inflation went above 8%. Telkom's offer is for a 6% increase each year, while inflation is currently at 5.9%.
However, Croucamp says the protection clause is problematic, as inflation has moved by two percentage points within a year six times in the last 13 years, so the union is not comfortable with such a large gap.
Croucamp adds the operator has also moved on the salary disparity, which it had previously said was up to unions to sort out. He says it has offered R41 million a year to address the gap, which comes to 0.8% of its payroll.
Communication Workers Union (CWU) spokesman Dennis Morobe says, however, this is insufficient. CWU is demanding an 11.5% wage increase, down from its initial 12%.
Croucamp says the salary dispute should be handled outside the wage talks. He adds the union has gone to its members for a mandate, but may counter the offer.
Morobe says the CWU wants to put an alternative salary dispute offer on the table, and is still standing firm on its demands. He adds there will be another discussion before 24 June, when the parties are set to meet again at the Commission for Conciliation, Mediation and Arbitration.
Telkom has said it is committed to its engagement with organised labour in the "best interest of its employees and the sustainability of its business".
Telkom and the unions have been in wage talks since March, going several rounds without being able to reach a settlement. Two years ago, a threatened strike was narrowly averted, when a last-minute offer from Telkom brought five months of salary negotiations to an end. Telkom's current two-year agreement with unions expired at the end of March.
The South African Communications Union was not available to comment.
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