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Unions challenge SA telco`s Africa operations

By Damaria Senne, ITWeb senior journalist
Johannesburg, 06 Dec 2005

Members of the African chapter of the Union Network International (UNI) have signed a resolution to work together across Africa to organise workers employed by South African multi-national telecoms companies.

The aim of the planned cooperation is to jointly demand better conditions for workers across Africa.

The resolution was signed on 26 November in Braamfontein, following three days of deliberations. Twenty delegates from telecoms unions in Kenya, Malawi, Nigeria, Mozambique, SA, Zambia and Zimbabwe attended the meeting.

One of the issues of concern among UNI Africa members is the failure of multinational telecoms companies from SA to invest in the communities where they operate, according to Communications Workers` Union (CWU) head of communications Mfanafuthi Sithebe.

Vodafone is not an African company and has clearly no interest in investing its profits in the people of Africa.

This investment would be in the form of job creation strategies as well as corporate social investment programmes.

South African multinationals were invited to take part in the deliberations so they could hear the concerns of the union representatives themselves. MTN, Telkom and the SA Post Office were represented.

Vodafone`s influence

"Vodacom owes a huge part of their success to the commitment of staff members, who would not go the extra mile if the allegations were true," says Vodacom Group chief communications officer, Mthobi Tyamzashe.

The working conditions for staff within Vodacom are modelled on those in SA, which existing legislation ensures are better than elsewhere. In addition, these conditions have been adapted to suit local conditions, he says.

Sithebe, however has a different view. He says he would have expected Vodacom, which is 50% owned by Telkom, to have adopted the fixed line operator`s social investment strategy and employment policies. He also alleges that the reason Vodacom has not done so is due to the influence of Vodafone, another key shareholder in the company.

"Vodafone is not an African company and has clearly no interest in investing its profits in the people of Africa," says Sithebe.

Tyamzashe however maintains that companies with poor working conditions would not survive in the competitive markets. If Vodacom`s work conditions were unacceptable, the company would not be able to retain the scarce skills that the industry requires, he says.

Tyamzashe also provided ITWeb with a document outlining core benefits provided for staff in countries it operates, including SA, as well as perquisite benefits (bonus/perks).

"Any bona fide party that wishes to establish the true nature of the staff conditions in the markets in which we operate should feel free to make contact with the individual managing directors of the companies involved,` he says.

Regarding Vodafone`s lack of interest in making social investments in Africa, Tyamzashe says Vodacom Group shareholders, including Telkom and Vodafone do not get involved in the day-to-day running of the company. The allegation about its disinterest in the welfare of staff on the continent can therefore not be true, he says.

MTN`s job creation

MTN Nigeria has earned billions since it started its operations, Sithebe claims, yet the number of local jobs created is disproportionately small to revenues.

"As at 31 March MTN Nigeria recorded 1 844 employees, of which 1 758 are permanent and 86 are expatriates," a statement from MTN Corporate Affairs says.

The statement goes on to note that MTN Nigeria`s contribution to economic development in Nigeria should be seen in the context of the significant benefits the company`s activities have brought to the country. These include direct and indirect job creation, increased government revenue and enhanced opportunities for large and small businesses.

However, media coverage of MTN in Nigeria also indicates that the issue of employment policies has arisen before in the group. On 7 March, Nigerian staff submitted a letter to human resources complaining that positions that were mapped out for Nigerian nationals were eventually awarded to South Africans.

UNI Africa delegates also alleged that MTN Nigeria is fostering hostile relationships with unions and failing to recognise them as important stakeholders, Sithebe says. The investment of multinationals in Africa also carries an obligation to the society, he says. Employment conditions should be fair; employees should have adequate benefits.

"What is good enough for SA should be good enough for the rest of the continent," he says.

MTN maintains that the social and economic well being of the group`s employees remains critical to the company`s success. To this end, the group provides a productive, equitable and safe working environment that attracts and retains quality employees, the statement says.

MTN also reiterates its commitment to principles of freedom of association and collective bargaining.

"To this end, MTN ensures that open and consistent dialogue with employees is maintained at all times," the statement says.

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