Fixed-line operator Telkom has snubbed threats of large-scale industrial action by its workers, as its latest wage offer failed to meet trade unions' demands.
The company tabled a proposed 6.5% across-the-board increase on Friday. It now faces the prospect of thousands of employees downing tools later this week, as unions remain firm on their demand of a 7.5% rise for highest-paid employees and 8% for lower-paid staff.
The offer was made at a special meeting with labour at the Commission for Conciliation, Mediation and Arbitration, as the two sides came together in last-ditch attempt to break the wage negotiation deadlock.
Ahead of the meeting, the unions presenting Telkom's employees - Solidarity, Communication Workers Union and the South African Communications Union (SACU) - threatened strike action would begin this Thursday, should their expectations not be met.
Wage talks between management and labour representatives have dragged on for about five months, finally stalling in the last few weeks.
A previous offer of a 5% increase, for the period between April and September this year, and an additional percentage point increase for the period October 2011 to March 2012, as well as an increase of inflation plus one percentage point for next year, was rejected by unions.
Telkom's latest offer covers a period of two years and should have already been in place by April. It further proposes an increase of inflation plus one percentage point for next year, according to a joint statement issued by the unions. The company also offered to increase employees' profit sharing to 18%, says the statement.
The trade unions are considering the new wage offer and will then consult with members.
SACU president Michael Hare previously warned the unions would not budge and are prepared to lead about 15 000 staff on a strike this Thursday, should Telkom not meet 7.5% and 8% pay hike demands.
Telkom's initial offer was 4.5%, which it subsequently increased to 5%. Inflation is currently 5.3%, according to Statistics SA.
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