Telkom is again planning to offer its employees the opportunity to take voluntary severance and early retirement packages as it looks to reduce its staff complement to save costs.
Employees interested in the offer must apply in a window period opening on 15 March and ending on 31 August.
Telkom says in a statement that it has consulted with the three trade unions it recognises, namely the Communication Workers Union, the South African Communication Union and Solidarity.
“The move is aimed at allowing Telkom to achieve its business objectives, secure its sustainability and commercial viability by rebalancing its workforce in line with its strategic imperatives,” the company says.
Telkom human resources chief Thami Msubo says the process is necessary as there is an “urgent need” for it to address its staff requirements, which “impact substantially and directly on the company’s cost base”.
Msubo says voluntary severance and early retirement provide the “most efficient and non-invasive manner in which the company is able to begin effecting control on its headcount costs”.
He says Telkom has the sole discretion to accept or decline any employee’s application based on the requirements of the business.
“After the … window period closes, and if the process has not achieved the desired results, the company may embark on retrenchments. Future retrenchment processes and severance packages will be done in accordance with the Labour Relations Act,” says Msubo.
A Telkom spokesman tells TechCentral that the outcome of the process will not be based purely on a reduction in the number of employees, but on the overall impact on the company’s cost structure. “This will be monitored continuously throughout the process to ensure that we reach the desire state of cost efficiency.”
Employee costs make up about 50% of Telkom’s operating expenses, excluding payments to other operators, cost of sales and depreciation, the spokesman says. — (c) 2013 NewsCentral Media