Trade union Solidarity this week accused Nokia Siemens Networks (NSN) of unfair labour practice and discrimination on the basis of race.
This is specifically with regards to the company's new employee share ownership scheme.
NSN announced on 21 May that it has transferred 13% of its shares to a newly-established NSN employee black economic empowerment trust. “The company's criteria are that only black employees, who have been in its employ for more than 24 months, who are employed on post grade 11 or higher, and whose performance assessment is on an adequate level, are eligible for shares. Solidarity lodged a grievance concerning the matter with the company.”
Additional disadvantage
In terms of the Labour Relations Act, these conditions come down to unfair labour practice with respect to the provision of benefits, as well as unfair discrimination on the basis of race in terms of the Employment Equity Act (EEA), according to head of Solidarity's labour court division, Dirk Groenewald.
“NSN's actions are disadvantaging all employees on post grades 10 and lower, and amount to unfair labour practice regarding the provision of benefits in terms of the Labour Relations Act.”
The trade union adds that the company's actions also constitute unfair discrimination on the grounds of race in terms of the EEA, since the aim of the EEA is the implementation of effective “affirmative action measures”.
“NSN's employee share ownership scheme is clearly not an affirmative action measure, as intended by the EEA, as it is not aimed at promoting employment equity opportunities or equitable representation. The share ownership scheme is nothing but an instrument to financially benefit a certain section of the company's labour force. Because only black people may acquire shares, white people, who are already disadvantaged by affirmative action, will now be financially disadvantaged as well.”
BEE objectives
Rufus Andrew, MD of NSN SA, says the share transfer was made to a newly established Nokia Siemens Networks RSA BEE Share Trust, which is an employee ownership scheme.
“Being a BEE trust, the beneficiaries would, as such, be employees who are black. Including white employees as beneficiaries of a BEE trust would be contradictory to the objectives set by the BBBEE Act. These employees will only serve as beneficiaries of the trust and will not receive actual shares in Nokia Siemens Networks RSA.”
As per the company's human rights policy, it says it takes a strong stance against any form of discrimination based on race, is committed to equal opportunities for all employees, and promotes diversity at a global, regional and country level.
“While the company aspires to have a high-performance culture, we also ensure compliance with the local regulations prevalent in countries like SA. Where conflict may exist between local laws and generally accepted international human rights standards, Nokia Siemens Networks will strive to resolve the conflict in a manner that best respects human rights,” says Andrew.
He explains that this is a shareholding arrangement under the BBBEE Act and does not directly pertain to labour relations. The company says it is open to further consultation and discussion on this specific matter.
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