Trade union Solidarity suspects Telkom's current restructuring will affect more than the approximately 2 600 managers it has already indicated are part of a possible retrenchment process.
The union says this is because Telkom has been unwilling to consult and communicate with employees and trade unions regarding the new post structure.
Earlier this month, Telkom sent letters to its 2 635 management staff saying they may be affected by a retrenchment process that could be in the offing. This is because of its "unsound" financial situation.
The letter explains the telco is in an "unsound" financial state, facing increasing costs and dwindling revenue, despite its previous bids to cut costs - including last year's voluntary retrenchment and early retirement process. It notes Telkom wants to implement a flatter management structure, which could lead to some staff being out of work.
Telkom has 19 215 staff, of whom 2 635 are categorised as management and specialist employees; a ratio of 6.3 workers to each manager. Telkom has said it "intends to reduce the management layer by about 25% by the end of the process," which puts the number of jobs on the line at around 650, close to the rumoured 1 000.
Marius Croucamp, Solidarity spokesman, says Telkom's current process of management restructuring is so extensive it will be impossible to not restructure junior levels as well after it has been implemented.
Telkom CEO Sipho Maseko has reassured staff that only its top management layer is affected by the process.
"The end result will, in all probability, be that Telkom will have to review its entire personnel structure following the management restructuring process." Solidarity is currently investigating its legal options, says Croucamp.
"We have already obtained a legal opinion. We are considering contesting the process formally, mainly because Telkom hasn't given us sufficient time and information to enable us to determine the extent to which the retrenchments will affect our members."
Croucamp adds drastic changes are needed to set Telkom on a path of financial viability again, but such a process should be carried out based on a comprehensive long-term strategy.
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