Telkom has labelled yesterday's Labour Court judgement - which prevents it from continuing with retrenchments for the time being - as "disappointing", but says it is a temporary delay in its turnaround strategy.
However, trade union Solidarity says Telkom's response is disingenuous, and leaves the company open to further litigation, as an employer is not allowed - by law - to take a final decision on retrenchments without consulting the union.
"They are technically implicating themselves by publically stating their final decision. We will challenge this as a mass illegal dismissal," says Solidarity spokesman Marius Croucamp.
"It will be really interesting to see how they plan to get themselves out of this one, as they have opened themselves up to litigation, by admitting they are simply going through the motions."
Following an urgent application by Solidarity, the court yesterday ordered Telkom to halt its restructuring retrenchments and withdraw the Section 189 notices it issued to unions on behalf of about 4 400 workers.
The ruling, handed down by judge David Gush, also effectively interdicts the Commission for Conciliation, Mediation and Arbitration from continuing with consultations around the retrenchments and forces Telkom back to the negotiating table.
Temporary glitch
The judgement essentially puts job cuts on hold and forces Telkom to return to the negotiating table to address a dispute declared by the union in terms of the retrenchment process, as well as supply Solidarity with more information about the entire process.
Telkom has reacted to the judgement as a temporary glitch in its restructuring plans. "We will study the full detail of the judgement to allow us to determine our next steps," says Jacqui O'Sullivan, Telkom's managing executive for group communication.
O'Sullivan notes the court ordered the dispute, which relates to information sharing, must be referred to the Commission for Conciliation, Mediation and Arbitration within five days.
"The judge also ordered the resolution should be expedited. We will certainly adhere to that order and would agree with the judge that a swift resolution of the dispute would be beneficial.
"Once the ordered dispute resolution has taken place, Telkom will be in a position to continue with the very necessary business turnaround process," says O'Sullivan.
She adds Telkom has engaged extensively with organised labour and will continue to follow all required processes to ensure it continually seeks to serve both the best interest of the business, as well as its people.
'Secretive' process
Meanwhile, Solidary called the judgement a victory for Telkom workers, who are regularly being subjected to restructuring processes. The union says it will do everything in its power to ensure Telkom abides by the court order and follows the correct procedures.
Croucamp also says it remains to be seen whether alternatives to retrenchment exist, as the company has so far been very "secretive" about the finer details of its restructuring plan.
In terms of what Telkom has revealed about the current restructuring process, as many as 4 400 of its employees could ultimately be retrenched, while a further 3 200 could be redeployed to other companies. The third option is for some employees to remain with Telkom, says Croucamp.
"The information that has thus far been supplied to us does not drill down into the details of the new structure. Based on the facts we have, we aren't even in a position to advise our members about which of the three options will apply to them," he says.
"A lot of information has to come out so that we can consult with our members meaningfully. The secrecy surrounding this process is a matter of concern. We are hearing rumours about management buyouts and such, which raises further questions about who is benefitting."
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