Telkom faces strike action

By Candice Jones for Telkom

Johannesburg, 31 Jul 2008

Telkom has confirmed that members of two of its unions will stage industrial action, starting tomorrow morning, after wage negotiations broke down.

The Communications Workers Union (CWU) and the SA Communications Union (SACU) will be protesting against Telkom's decision to outsource between 80% and 90% of its operations and a continued dispute over wages.

The unions say Telkom is planning to outsource a large chunk of its operations, which will affect anywhere between 14 000 and 16 000 of its 24 879 employees. While these employees are expected to be employed by a "strategic partner", who will be announced in August, unions are still concerned over the safety of members' employment.

According to SACU spokesman Karriem Abrahams, the company attempted to outsource the security around cable theft, which left it in more of a predicament than when it was policed in-house.

"Telkom paid in the region of R600 000 for Telkom employees to secure the copper cables. The company then decided to outsource the task and paid a private company R969 000. However, cable theft shot up by 90% and there are rumours that the private security company had a hand in the theft."

He says the union approached Telkom with its complaints and have not heard anything back. The next plan for outsourcing will be the employees who install and maintain handsets, adds Abrahams.

An ITWeb reader and Telkom employee says the company's decision to outsource its operations is just a smoke screen for a more political and financial agenda. The reader believes the company's executive management expect to be replaced by the SA's next administration and want to get out with as much money while they have an opportunity.

"They have to sell it off and tear it apart while they can," says the reader, also alluding to close relationships between the executive management and those companies which are being reviewed for the outsourcing process.

Execs high pay

The action is expected to last until 5 August. "Telkom confirms receipt of a section 64 notice, jointly from CWU and SACU, effectively stating the intention of their members to engage in protected industrial action. The principle of 'no work no pay' will apply," says Telkom's executive of employee relations Meshack Dlamini.

The Unions have demanded a 12.4% increase, while Telkom will only agree on 10.5%. Trade union Solidarity agreed to accept the 10.5% increase near the beginning of July. The unions are hoping to garner members an increase 2% above the inflation rate.

According to Abrahams, Telkom's offer is unacceptable, especially concerning the salary increases received by the company's executive management. "They received 150% increases and want to give us 10.5%. They say they can't afford to give anything higher."

Telkom released its filing with the US Securities and Exchange Commission (SEC), in which it says it paid axed CEO Papi Molotsane a R12 million severance package and his replacement Reuben September R19.1 million. Telkom's board members received payments totalling R35 million during the financial year ended 31 March.

The unions also want Telkom to review the medical aid contribution, gain-sharing and the standby allowance.