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Telecoms in firing line

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 26 Apr 2011

The Communication Workers Union (CWU) is waging a war against SA's two largest cellular companies in a bid to force the telecoms sector to stop using labour brokers, and hire staff on a permanent basis.

The CWU, which is affiliated to SA's largest trade union federation, the Congress of South African Trade Unions (Cosatu), is threatening a nationwide strike against MTN and Vodacom, because they use temporary staff in their call centres.

The union has also dragged a labour dispute in KwaZulu-Natal to court in a bid to force MTN to stop using an employment agency, and hire staff fulltime. The quarrel is part of the union's long-term plan to get labour brokers banned in the sector, says provincial secretary Thami Mzileni.

Cosatu has been agitating for a total ban on labour broking; arguing workers are taken advantage of and don't receive the same benefits as full-time employees.

Last year, government proposed amendments to SA's current labour regime that would see temporary employment agencies banned, causing outrage among business, because an outright prohibition would push up the cost of doing business. The issue is a long way from being resolved, as negotiations between business, labour and government are ongoing.

Sabre-rattling

Mzileni says a nationwide strike is “looming” against MTN and Vodacom to force the companies to stop using labour brokers.

The union is up in arms over Vodacom's recent call centre restructuring, which saw around 700 temporary staff members moved into permanent positions with its outsourcing partners. The CWU argues, however, that the restructuring amounts to retrenchments.

The CWU says Vodacom's restructuring is “arrogance, disrespect and brutality of the first order, ignoring the call made by the majority of our people during public hearings on labour broking to totally ban labour brokers”.

Vodacom previously denied any retrenchments, pointing out that its restructuring resulted in more than 700 workers being employed full-time by its outsourcing partners. Vodacom's call centre operations are now managed by outsourced companies with specialties in specific areas.

Vodacom's chief officer of corporate affairs, Portia Maurice, says: “We are continuing to engage with the CWU on Vodacom-specific issues, but at present we have no further comment.”

The CWU also has its swords out against MTN's use of a temporary employment agency in KwaZulu-Natal.

Last week, the CWU took Tlhalefang Placement to the Labour Court, in Durban, to force the employment agency to reinstate about 100 workers that were suspended after a strike earlier this month at MTN's Mount Edgecombe call centre. The union cited the cellular company as a co-respondent in the matter.

Mzileni says the court action is a part of the union's long-term plan to force labour brokers, “the worst form of slavery”, out of the sector.

“Our long-term goal is abolishment of labour broking. What we are doing now is the first step in the battle ahead.” He says a “national strike is looming” against temporary employment agencies because they exploit workers by not paying staff benefits.

Storm in a teacup?

MTN's human resources executive, Themba Nyathi, says the threatened strike action and the union's recent labour court application in KwaZulu-Natal are ploys to force labour brokers out of the sector, and pre-empt legislative changes.

Nyathi alleges a subversive faction within the union wants to put the cellular industry under pressure in a bid to force out labour brokers. He warns banning labour brokers will push up operating costs, ultimately leading to job losses.

The dispute started when about 300 workers went on strike last month, demanding that MTN get rid of Tlhalefang, hire staff permanently and pay bonuses to temporary workers. Earlier this month, despite negotiations between the three parties, staff again downed tools, says Nyathi.

As a result, about 70 workers were suspended without pay, he says. The CWU went to court to force Tlhalefang to reinstate the workers, and is threatening to use the dispute as a catalyst to get rid of labour brokers across the sector.

The cellular company employs about 600 staff at the KwaZulu-Natal centre, of which 450 work on a temporary shift basis. Of these, less than half were recruited by Tlhalefang, says Nyathi.

The union lost the court bid, as the judge ruled that the suspension was fair, and that Tlhalefang can take disciplinary action against the suspended workers, because the strike was illegal, says Nyathi. However, the CWU has hailed the ruling as a victory because suspended staff must be paid, says Mzileni.

Tlhalefang operations manager Vanessa Rajah did not return calls requesting comment.

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