The two largest trade unions at fixed-line telecoms giant Telkom, which represent more than half its total staff complement, are threatening to bring the company to a standstill from 20 August if it does not improve its current wage offer.
The Communications Workers Union (CWU), the South African Communications Union (SACU) and Solidarity have been locked in wage negotiations with Telkom for more than five months.
However, organised labour is starting to run out of patience with the fixed-line operator, accusing it of not coming to the table. A strike would have a negative effect on SA's economy, because Telkom provides much of the country's communications backbone, the unions point out.
The current round of negotiations relate to a two-year deal, which was meant to be implemented on 1 April. However, Telkom has not moved from an improved 5% offer, while unions want between 10% and 12%.
Telkom's 5% offer is an improvement on the initial 4.5% it put on the table. However, unions say this still is not enough to offset inflation of 5% and trim the wage disparity between Telkom's lowest and highest paid staff. Inflation is currently at 5%, according to Statistics SA.
After negotiations deadlocked, the Commission for Conciliation, Mediation and Arbitration (CCMA) intervened in a bid to find a solution to the impasse. On Thursday, the CCMA told Telkom its offer was not reasonable, and sent it back to get board approval for an offer of between 7.5% and 8%.
If Telkom does not return with an improved offer in line with the CCMA's recommendation, the CWU and SACU are prepared to take their members out on strike, with potentially devastating effects.
Telkom's executive for employee relations, Meshack Dlamini, has previously said it “has contingency measures in place to minimise the potential effect of industrial action”.
However, an August 2009 strike, when 2 000 staff members embarked on industrial action, saw customer service faults increase 30%, and sabotage to the network cost Telkom millions of rands.
Telkom lost 18 “man days” last year when 2 241 staff participated in a strike in the run-up to the 2010 Soccer World Cup.
Job losses?
security is subject to unions accepting its final offer.
Michael Hare, SACU president, says this implies that if Telkom comes back with a better offer, more jobs will be lost, a situation the unions will not tolerate. Last year, Telkom offered voluntary severance packages, which 186 management and 1 830 bargaining unit employees accepted, costing it R739 million.
The fixed-line company had 22 884 permanent employees at the end of March, according to its latest annual report. The bulk of its staff belong to one of the three unions, with 8 228 holding CWU membership cards, 4 078 being members of SACU, and another 3 177 being represented by Solidarity.
The company has been under pressure to trim its cost base as revenue from fixed-lines continues to dwindle. In June, the company said a key priority was to “aggressively tackle the cost conundrum” for which it will need the support of labour. “Telkom is firmly committed to reducing its cost base,” it said.
In its annual report, it warns the major risk associated with keeping costs under control and in line with inflation is “our negotiations with labour unions over salary increases”.
Not good enough
Unions argue that a 5% increase is not good enough, because it does not translate into a real increase as inflation is currently 5%, which would negate the effect of any benefit.
CWU lead negotiator Toto Ntetho says the unions want an offer of between 10% and 12%. He explains the 12% hike would apply to the lowest paid workers, while 10% would be for those earning a higher salary.
Ntetho says the CCMA has instructed Telkom to get board approval for hikes of between 7.5% and 8% and the parties will meet again next Tuesday to discuss the situation. If Telkom does not come back with a better deal, CWU will strike as it is “mandated to make the company move”, he adds.
“If we go out [on strike], it will be a big problem for the company and its customers,” says Ntetho. He adds a strike would have a negative effect on SA's communications infrastructure as Telkom also provides a backbone for mobile operators.
CWU believes the 10% to 12% demand is reasonable, because it also takes into account the wage disparity at the company, says Ntetho. He says the disparity between the lowest and highest paid workers must be resolved.
Hare adds, if the impasse is not broken, the union “definitely will strike”. Should Telkom not revert with a better offer, the union will request a strike certificate and industrial action will take place from 20 August, he says.
Hare warns a strike will have a crippling effect on SA's economy, as Telkom is the country's communications backbone. “We've waited long enough.”
Solidarity spokesman Marius Croucamp says unions are running out of patience, as Telkom has been ignoring the process and has left it to “brew”.
“We've tried everything in our power to avert a strike in Telkom, but we are getting to the 11th and 12th hour.”
Croucamp says unions can ask for a certificate of non-resolution if there is absolutely no process and even the CCMA throws in the towel. After a certificate is issued, unions can give 48 hours' notice before embarking on industrial action.
However, Croucamp says Solidarity will “keep trying” to reach an agreement through the CCMA process.
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