Telkom figures 'misleading'

Trade union Solidarity alleges Telkom is misleading the public over claims that CWU is a majority union.

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Trade union Solidarity has accused Telkom of trying to mislead, after the telco said its Communication Workers' Union membership figures give it a majority, which would make a wage agreement enforceable across the board.

The agreement, which Telkom says applies to all staff in the bargaining unit, after it was signed by CWU, has been backdated to April and aims to remove historical salary disparities.

Both Solidarity and the South African Communications Union (SACU) have argued the deal cannot apply to their members, because CWU is not a majority union. They oppose the offer, arguing it will amount to a wage freeze.

Telkom has hit back, stating 51.65% of employees in the bargaining council were CWU members when talks started at the end of March. Some 27.55% belonged to SACU, and 20.79% to Solidarity.

Solidarity says CWU's 51.65% does not count as a majority in terms of the law, as the figure should be worked out across all staff, and not limited to the bargaining unit. According to Telkom's information, CWU represents 39.06% of all staff, SACU 20.52% and Solidarity 15.18%. Some 25.23% of its staff members are not unionised.

Telkom's group executive for employee relations, Meshack Dlamini, said on Thursday the accord will benefit 16 800 staff, while only 1 719 employees will not receive an increase for the next three years, but rather once-off payments every month.

The increase will result in some staff gaining a pay rise of more than 6%, and others less than that. Telkom has agreed to engage with unions if inflation moves above 7.5% and remains there for six consecutive months. Inflation is currently at 5.5%.

On Friday, the telco issued a statement saying it believes the deal, signed on Thursday with CWU, "is a means to address and eradicate salary disparities based on race and gender". It says: "The company hopes that Solidarity, by opposing the agreement, is not attempting to perpetuate the disparities."

Telkom says, even when counting membership figures at the end of June, "CWU has the majority membership of unionised employees, even when considered against the combined membership of the South African Communications Union and Solidarity. CWU also has the majority membership when Telkom's non-unionised employees are considered."

The agreement, proposed to Solidarity's leadership, seeks to benefit a greater number of its constituency, instead of an elite minority, and most of its members will benefit, argues Telkom.

CEO Sipho Maseko said in a statement: "Despite difficult current economic realities, Telkom, together with organised labour, have utilised the process of substantive negotiations to collaboratively address critical issues within the context of the group's sustainability.

"At a time when Telkom is refocusing its strategic imperatives in order to ensure cost-effectiveness and the sustainability of its business, it is commendable that all parties went into the substantive negotiation process fully cognisant of the challenges being faced and the teamwork that is required to overcome these."

Telkom adds it has received written commitment from SACU that, following its internal processes, the union intends to sign the proposed agreement. This would give it a majority, Maseko has said.

However, SACU has said it will stand with Solidarity and will not sign the agreement in its current form. SACU president Michael Hare was not available to comment this morning.

Solidarity spokesman Marius Croucamp argues Telkom is trying to "mislead" everybody. He says the Labour Relations Act defines a majority union based on the total number of staff, and not just unionised employees, or those in the bargaining council.

The courts endorse a majority union as one that represents more than half the staff, says Croucamp. He notes this has been fairly consistent over the past few years.

Croucamp adds Solidarity has just more than 3 000 members at the telco. Telkom is unaware of about 300 members who have exercised their right to not make their affiliation known to the company, he adds.

Solidarity's members have not given the union a mandate to agree to the deal, says Croucamp. While the way forward for the union will not be known until tomorrow, he says it will not go out on a full-blown strike.

Croucamp says, however, Telkom can unilaterally implement the deal and, as it relates to wage increases, courts will not rule against it. Yet, he says Solidarity's hands are not tied and there are a few options open to it, which he did not disclose.

Despite Telkom's assertions that most of its members will benefit from the deal, Croucamp says this will only be the case in the first year and, as staff move up the pay scale, only half of its members will get a real benefit in year three.

Solidarity says 31.5% of all Telkom staff will not receive a salary increase in year three of Telkom's wage model.

Telkom will conduct external salary benchmarking and share the results with the trade unions before implementing salary increases in the second and third year. Depending on whether the market 50th percentile reduces or increases, the status quo will either remain or revised values will be applied, it says.

Croucamp says there are early indications Telkom will lose skilled staff as some of its members have indicated they will accept early severance packages the next time they are offered.

Solidarity's Twitter account warns: "We fear a brain drain/skill exit from Telkom over the next [three] years as a result of the new wage model, [which] will impair Telkom's recovery."

Unionised staff in the defined bargaining unit at the end of March:

Union breakdown across all staff at the end of March: