Telkom appears set to face industrial action after talks between the telecommunications operator and trade unions Solidarity and the South African Communications Union (Sacu) reached an impasse on Thursday at the Commission for Conciliation, Mediation and Arbitration (CCMA).
The wage dispute began in March when a two-year wage deal came to an end. Telkom has held discussions with Sacu and Solidarity, as well as the Communication Workers Union (CWU). The CWU has been amenable to Telkom’s offers, but Sacu and Solidarity say they cannot accept what the company has put on the table.
Telkom initially offered a 6%/year increase across the board for three years, but then altered its position saying it wanted to reduce wage disparity and the increase would no longer be uniform but would be scaled depending on employees’ jobs and salaries.
This meant some employees would receive increases well below 6%, while others’ salaries and wages would have remained unchanged for three years.
Sacu represents 3 900 Telkom employees — almost 20% of its workforce — and has asked the CCMA commissioner to issue a strike certificate. Its president, Michael Hare, says no agreement was reached but that a strike certificate was not issued because the parties have agreed to one more attempt at reaching a settlement.
If agreement is not reached, a strike certificate will be issued next Thursday. Hare says he cannot see the parties reaching a settlement. “We are too far apart,” he says. “Telkom wants to address disparities using the current inflation rate, which is 5,9%. Its current offer is 6%, which we are agreeable to, but Telkom wants to take from that figure to deal with wage disparity. The disparity was created by the company’s own remuneration structures.”
Hare says the situation is “bleak” and it “looks likely we will embark on industrial action in coming weeks”. He says strike action won’t follow the issuing of a strike certificate immediately and that the union will picket and attempt to reach agreement via other means before embarking on a full-blown strike.
“Based on our membership profile, we have a number of members located in strategic positions within Telkom,” Hare says. “A stayaway will have a major effect on the company. Telkom cannot afford a strike because it needs our members support for rolling out its [next-generation network].”
This NGN is “critical to the company’s future”. He says it is now up to Telkom to “come to the party” if it wants to avoid strike action.
Hare says Telkom has put three separate offers on the table. He received support from Sacu members for the first offer, only to have Telkom alter the details when the parties met again. He says this happened a second time. “We were surprised Telkom didn’t move the goalposts again at yesterday’s meeting.”
Next week, Telkom will meet with each union separately to clarify its position. At the end of the week, all parties will return to the CCMA to decide whether an agreement can be reached.
Meanwhile, Solidarity spokesman Marius Croucamp says Thursday’s meeting was “disappointing” because it didn’t take the issue forward.
“Telkom doesn’t seem willing to negotiate,” Croucamp says. Telkom’s proposal is “very complex” and “amounts to a totally new remuneration model”, which Solidarity “does not have a mandate to accept”.
“Also, Telkom cannot introduce a remuneration model that’s new during wage negotiations. A new model will have effects for years to come and we believe it should be addressed separately.”
Employees who were encouraged to stay with the company by being offered increases in the past will now be penalised because they will not receive increases as they are now in a higher pay bracket, he says.
At the same time, the move could allow Telkom to retrench staff three years from now using their current salaries as the basis for severance.
“The real risk for Telkom is that it might actually distance itself from its top performers.”
Solidarity believes Telkom is attempting to reduce its salary bill over the next three years, but isn’t saying as much to the unions.
Like Sacu, Solidarity will meet Telkom next week as part of a “cooling-off period” requested by the CCMA. But if agreement isn’t reached, Solidarity may join Sacu in seeking a strike certificate. But, Croucamp says, Solidarity is always “prepared to negotiate”.
“We do consider Telkom’s position and we also want to be party to assisting Telkom turn its ship around. But we don’t believe this is the way.” — (c) 2013 NewsCentral Media
