As trade union Solidarity declared a dispute with Telkom over the telco's refusal to withdraw retrenchment letters, the company has issued a statement, signalling its intention to continue on what it notes is a "tough journey" of a turnaroud strategy.
Telkom recently issued retrenchment letters to 105 employees which it said could not be placed in alternative positions within the company - a move that drew strong criticism from organised labour.
However, in a statement released today, Telkom says the restructuring process is informed by "complex and demanding considerations that are key to the successful execution of the process".
Sipho Maseko, Telkom's CEO, said: "These staff reductions have resulted in high levels of anxiety and we remain committed to doing all we can to limit the impact of these changes on our people. We do, however, need to remain focused to deliver on our collective future success".
Alternative options
Telkom said in its statement that its commitment throughout the discussions has been "to conduct this difficult process with respect to both the letter and the spirit of South Africa's labour laws", including appointing an independent mediator to facilitate discussions.
"The staff that have been affected by this organisational restructuring, has been limited the management and specialist layers. Telkom engaged with labour on all elements of the process, including the timelines to be followed.
"In line with these agreed upon timelines, each affected individual was given two opportunities to apply for positions, with the new structures. Staff were also engaged to suggest alternate options, such as the voluntary severance packages and voluntary retirement options.
"At the end of September, the "Section 189" process was concluded, for the affected staff. As per the agreed upon process, staff whom had not been appointed into a new role by the end of September, were at the end of the "Section 189" process and were therefore issued with notices of termination. The period of service, for those affected individuals, concludes at the end of October.
"Throughout this difficult time, Telkom has always sought to pursue any reasonable measure to retain qualified and experienced staff.
"To this end, Telkom has also informed all affected staff that they are eligible to apply for any roles that may become available through normal staff movement processes, such as resignations or transfers, during their notice month of October. This offer is not part of the "Section 189" process but is a separate action by the company as a final attempt to place affected candidates.
"The intention of the Telkom turnaround strategy is to secure the future commercial sustainability of the business. There should be no doubt, the sustainable success of this company is largely dependent on both the attraction and retention of qualified, competent and experienced professionals.
"Simply placing people into positions, regardless of their competencies, qualification or experience just to avoid their retrenchment, would be a huge disservice to the business. While we respect labour's right to protect their members, Telkom must place the right people in the right structures and roles.
The organisational restructuring has not been driven by headcount reduction targets, but rather by business imperatives that will shape the long-term commercial sustainability of the company. Telkom will therefore not be withdrawing the notices of termination that have been legitimately issued in line with the agreed upon process".
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