Telkom 'playing by the rules`

Johannesburg, 20 Aug 2004

Telkom has reassured communications minister Ivy Matsepe-Casaburri that it is playing by the rules with its job cuts.

The Department of Communications had called on Telkom to explain why it was reported that no consultation with unions had taken place regarding possible job cuts.

The monopoly claims that it remains committed to the consultation talks with organised labour, after it was recently announced that Telkom planned to go ahead with the retrenchments of about 4 100 workers over the next three years.

According to Oupa Magashula, group executive for human resources at the organisation, the company is keeping the department in the loop on the company`s drive to review, streamline and refocus its business in response to changing market conditions.

"Telkom has been in consultation with organised labour since 6 August, in meetings facilitated under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA)," he says.

"All these consultations are aimed at seeking common understanding around the rationale for the reduction in headcount, and labour`s alternatives in terms of avoiding forced retrenchments."

In response to a Department of Communications statement that "it is important that appropriate conditions for job creation and job retention are created in order for SA to appropriately address the challenges towards sustainable development", Magashula says Telkom is operating in terms of Section 189 of the Labour Relations Act.

"Our view is that it is incumbent upon the company to employ all avoidance measures before presenting organised labour with the inevitable situation of forced retrenchment.

"Based on our experience, and the excellent successes of our alternative strategies approach, these situations would only arise after the tenure of affected employees - who did not take voluntary packages - in the Agency for Career Opportunities expires, which would be in 12 months time."

Magashula says the company views the offering of voluntary retrenchment packages to affected employees as an effective and credible avoidance measure.

"No individual is forced to opt for a voluntary severance package (VSP), it is exactly that, voluntary," he says.

"It is for this reason that Telkom has committed itself to abide by a court interdict and only embark on the VSP route after the expiry of the consultations at the CCMA, which is on 13 September."