Eighty-eight iTalk employees have been affected by the merger of the two companies so far, says MTN.
However, MTN is still trying to integrate as many people as possible into other positions.
The telecoms company has come under fire in recent weeks over the job losses at its distributor, with industry commentators saying MTN has not followed through with the promise to keep on iTalk staff.
MTN snapped up the KwaZulu-Natal-based service provider at the beginning of the year, after the Competition Tribunal unconditionally approved the merger. Rival bidder the Huge Group contested the deal through the Competition Commission and Tribunal, saying MTN would dissolve iTalk and diminish competition.
iTalk was already 49%-owned by MTN and the mobile company exercised its pre-emptive rights for the distributor's remaining shares, taking out Huge's bid for a majority stake in the business.
iTalk only ever distributed MTN products and, in an interview with ITWeb at the time, the company explained its intention after the acquisition was to make the distributor a branded MTN set of stores.
Alternative options?
MTN says when the acquisition was undertaken, it did not have time to complete due diligence on the business, because it exercised its pre-emptive rights to buy out the remaining shares.
“MTN acquired iTalk in good faith with good intentions to preserve all jobs. The detailed analysis of the business which followed showed us where alignment with MTN's business would result in duplication of functions, as the plan was always to integrate iTalk functions into MTN,” the company adds.
MTN says that, at the moment, 88 employees face possible job losses. However, the cellular operator notes it is likely this number will decrease, because it is working to find alternative positions for some of those employees.
It adds that where the company cannot transfer the staff members, it is working to help with training and career counselling. “We are also looking at possible re-employment within six months if opportunities become available.”
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