Trade union Solidarity on Friday said a further 300 jobs are on the line at Telkom as the company continues with a cost-cutting programme that involves reducing the size of the organisation’s employee base.
The union said in a statement that Telkom issued a notice of retrenchment on Thursday in which it said that around 300 jobs at its corporate office will be affected by the process.
“It is also intended to transfer 254 employees to another company in compliance with section 197 of the Labour Relations Act,” Solidarity deputy general secretary Marius Croucamp said in the statement.
Croucamp said it’s the tenth consecutive year that Telkom workers are affected by job cuts.
“This is the tenth consecutive year that Telkom is downsizing jobs by means of either retrenchments or offering severance packages.”
Telkom, meanwhile, has confirmed the retrenchment plans.
“As part of Telkom’s multi-year turnaround, the company today announced a restructuring of its corporate centre, through a section 189 process,” the company said in response to a query from TechCentral.
We have made important progress on our turnaround in the past two years but we still have a lot to do
“Telkom yesterday informed unions of its intention to pursue a section 189 process, within its corporate centre, which may impact approximately 300 people. In addition to this, Telkom plans to outsource in the region of 260 roles in its shared service environment through a parallel section 197 (outsourcing) process. The section 197 process involves the outsourcing of roles and no jobs will be lost.”
The company said its first Commission for Conciliation, Mediation and Arbitration-facilitated consultation on the section 189 process will begin on 8 March.
“We have made important progress on our turnaround in the past two years but we still have a lot to do,” said Telkom CEO Sipho Maseko.
“We have to change and improve the way we work and how we deliver products and services to our customers. Our new operating model is driving this and while these changes are never easy, the streamlining of our corporate centre is an important step in delivering a sustainable and growing Telkom.” — (c) 2016 NewsCentral Media