As the boardroom squabble over jobs at Cell C continues, the union representing workers is claiming temporary relief, following the decision by the Commission for Conciliation, Mediation and Arbitration (CCMA) to halt the process.
The Information Communication Technology Union (ICTU), which represents 60% of staff, says the consultations initiated by Cell C are “grossly defective” hence the CCMA commissioner stalled the process.
Cell C has denied this, saying it is of the view that the ICTU is using delay tactics.
On Friday, the CCMA commissioner agreed to take under review issues raised by the union regarding the consultation process.
Matters being reviewed are that the Section 189 notice is defective in content and the manner in which it was served; secondly, that in terms of the collective agreement, the ICTU should be the sole representative in this process on behalf of all employees within the bargaining unit.
The union has until close of business on Tuesday to make a written submission with its arguments to support the complaint, while Cell C has until close of business on Thursday to respond.
Thereafter, the commissioner will make a ruling on both matters and propose a way forward.
Thabang Mothelo, ICTU media officer, comments: “Whilst ICTU notes and appreciates the ruling, which it considers as Cell C's first loss in the marathon of battles, the union will not celebrate this significant reprieve because its focus is to avoid retrenchments in Cell C. This is after 2 500 employees were served with retrenchment notices.
“Key to the defective process is that Cell C has drummed up support of non-unionised workers to represent themselves within the proceedings, which is unlawful.
“Furthermore, some Cell C senior executives were irregularly representing workers, despite senior management employee retrenchment consultations, where they are affected, had not been legally concluded.”
In response, Cell C says it remains committed to be fully-compliant with the applicable laws and processes and “looks forward to these preliminary issues being resolved speedily so that the parties can meaningfully engage in the consultation process, to bring about certainty to all affected employees”.
It adds: “No final decision has been made in the Section 189 process and the consultation process with affected employees is meant to obtain input for consideration before a final decision is made.”
Cell C chief legal officer Zahir Williams comments: “It is important to clarify that the commissioner has not ruled that the Section 189 proceedings are defective. Until such time as the commissioner has ruled on the two issues, the Section 189 process continues.”
The telco says the commissioner's ruling on the two issues in question will determine the way forward.
The operator argues that for many years Cell C has under-performed and generated significant losses. Last year, Cell C recorded an R4.2 billion loss and in 2018 losses were R7.3 billion.
“A turnaround strategy was put in place in early 2019. One of the pillars of the strategy is a focus on operational efficiencies. Efforts to streamline the business have included cost savings through procurement cuts, a year-long hiring freeze, a review and discontinuation of certain product offerings, all in an effort to turn the business around,” it says.
“It has become necessary to review Cell C’s operating model and organisational structure. It is the company’s view that over time the operating model has resulted in a number of inefficiencies. This is contributing to the operating and financial challenges the company currently faces.”
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