Telkom will meet with its three major unions next week to hold talks over its latest round of job cuts.
Telkom aims to trim its core workforce to below 10 000 employees by shedding about 7 800 jobs as it seeks to become a next-generation telecoms provider. Spokesperson Jacqui O'Sullivan explains the telco will initially follow a voluntary exit process, but is also considering retrenchments.
In addition to the voluntary retrenchments and early retirements, which will trim head count by 4 400, Telkom will also "exit" about 3 400 staff through outsourcing them to other companies or via enterprise development.
O'Sullivan explains the enterprise development option will see Telkom assist existing employees to develop their own new businesses. "These businesses, which will be owned and managed by former Telkom employees, would then be able to contract their services back to Telkom along with any other service providers in this growing and competitive industry."
After the restructuring, Telkom Wholesale will end up with an estimated 4 000 full time employees in the new separated wholesale business. Telkom is splitting its operations into three entities: retail, wholesale and infrastructure.
The company engaged with unions on Tuesday over the restructuring and will again meet with organised labour next Thursday, says O'Sullivan. She adds the restructuring is vital to ensure the long-term commercial sustainability of the business. "We remain committed to collaborating with organised labour in the best interest of Telkom and its people."
Solidarity has reacted to Telkom's job-shedding news by saying it will establish a crisis task team, which it says will include its "top lawyers" as well as researchers, counsellors and financial advisors. "Solidarity will also launch a four-point plan to form the basis of its fight with the telecommunications giant."
The Communication Workers Union - the biggest union at Telkom - was set to meet to discuss the matter yesterday. President Clyde Marvin was not available this morning to comment on the outcome of the meeting. The South African Communications Union has yet to indicate its position on Telkom's job-shedding.
Earlier this year, 724 employees accepted retrenchment packages, while 1 170 Telkom staff have been transferred to outsourced companies.
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