Third union signs Telkom job cut agreement

By Rodney Weidemann for Telkom

Johannesburg, 14 Feb 2005

The Communication Workers Union (CWU) has joined the other two unions operating in Telkom`s workplace environment in signing the company`s headcount management agreement.

The agreement was initially ratified by the Alliance of Telkom Unions, which comprises Solidarity and the SA Communications Union, at the beginning of February, although the CWU wanted more time to study the proposals.

Telkom claims the headcount management strategy is a mechanism employed to manage down staff numbers as part of its need to improve business operations in the fast-changing world of technology.

According to Telkom`s human resource group executive, Oupa Magashula, now that all three unions have signed the agreement, the monopoly will put a one-year moratorium on retrenchments if a headcount reduction figure of 2 903 is reached voluntarily.

"Telkom`s revised strategy focuses on combining the voluntary separation packages and a reduction in other staff costs-related expenditure to improve efficiency, which, if successfully implemented, may even see the one-year moratorium extended," says Magashula.

"All employees will also be offered enhanced packages, which include eight months` notice pay, a figure that is two months more than what was offered last year."

He says the voluntary severance packages have also been enhanced through a social plan benefit of R20 000 or R10 000, which can act as start-up capital for those launching new business or continuing with existing enterprises.

Part of the deal also includes a joint national committee, with involvement from all three unions, which will monitor the implementation of, and set time frames for, the voluntary process, as well as providing input on the drafting of briefing documents for employees.

Magashula attributes the unions` endorsement of the company`s strategy to the mutually beneficial labour-management relationship between the organisations.

"We have come a long way with our social partners to reach a stage where have now signed an agreement which effectively brings stability and certainty in our business, with no cloud of possible retrenchments hanging over employees` heads," he says.