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Unions to meet with Telkom's Maseko

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 22 Jul 2015
Labour unions will meet with Telkom CEO Sipho Maseko tomorrow to be briefed on the telco's future plans.
Labour unions will meet with Telkom CEO Sipho Maseko tomorrow to be briefed on the telco's future plans.

Trade unions are set to meet with Telkom CEO Sipho Maseko tomorrow, to discuss the company's plans for its ongoing restructuring and transformation process, following the operator's decision last week to abandon forced retrenchments.

"We had a meeting with Telkom yesterday, where we asked to be briefed about its plans, and we wanted to speak with the CEO, but were told that we must first accept a precondition that voluntary severance packages would be offered to our members before this happens," says Solidarity spokesperson Marius Croucamp.

He says the meeting was subsequently adjourned, as members would not be forced to accept voluntary severance packages without unions being briefed about what these include. Croucamp adds Telkom later withdrew the precondition and agreed that unions could meet with Maseko tomorrow.

This morning, Telkom said it could not comment on the number of non-unionised workers who have accepted voluntary severance packages, as the process is still ongoing and open until 27 July. "At this stage, it's a moving target; some workers might wait until the last day to apply, while some might do it in the middle of the process and others might have done so at the start."

Telkom also noted some applications for voluntary severance packages might not be accepted by managers, if the position is deemed to be one that cannot be done away with.

No forced retrenchments

Last Monday, Maseko announced the telco would abandon a process of forced retrenchments of more than 4 400 staff, and instead offer non-unionised employees voluntary severance packages and voluntary early retirement packages.

At the time, Telkom added it would only extend the offer to unionised staff after consultations with unions. Solidarity, the Communication Workers Union and the South African Communication Union together represent around 60% of Telkom staff, while the rest remain non-unionised.

Telkom's plans to lay off thousands of employees were shelved recently, when the Labour Court ruled in favour of Solidarity and ordered the company to halt its planned axing of 4 400 workers.

The court also ordered that trade unions refer a dispute to the Commission for Conciliation, Mediation and Arbitration, and Croucamp says 3 August has been set aside for the parties to meet with the commission for attempted conciliation.

Meanwhile, Telkom has claimed it has no option but to continue with its business transformation strategy, including cutting costs by at least R1 billion a year, if it is to ensure its sustainability over the long term.

The company is looking at other cost containment options, including a wage freeze that would include the CEO and all management. It is also looking at implementing reduced or flexible working hours, new methodologies to improve productivity, and potential outsourcing options.

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