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    Home » News » Telkom talks tough on retrenchments

    Telkom talks tough on retrenchments

    By Duncan McLeod14 October 2014
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    Sipho Maseko
    Sipho Maseko

    Telkom will not withdraw notices of termination issued to 105 employees, despite a demand from the Communication Workers Union (CWU) that it do so.

    The termination letters were issued legitimately in line with the agreed upon restructuring process at the telecommunications operator, Telkom said in a statement issued on Tuesday evening.

    “This turnaround is a tough journey. These staff reductions have resulted in high levels of anxiety and we remain committed to doing all we can to limit the impact of these changes on our people. We do, however, need to remain focused to deliver on our collective future success,” said Telkom CEO Sipho Maseko in the statement.

    On Friday, news agency Sapa quoted the CWU as saying that Telkom had issued retrenchment letters to 105 staff members.

    “This was surprising to us as Telkom had reported that 302 management staff had taken voluntary severance packages and others had taken voluntary retirement packages,” the union said in a statement.

    “The target that Telkom wanted to achieve was 223, which meant that with 302 having been allowed to exit through severance packages they had over-achieved their target of 223. Secondly, there were still 168 vacancies available, yet Telkom had issued these 105 managers with letters of forceful retrenchment,” it said.

    It demanded that Telkom retract the letters.

    But Telkom said on Tuesday that the retrenchments were part of a process with organised labour that started in April that would lead to a reduction in headcount.

    “Telkom’s commitment, throughout these discussions, has been to conduct this difficult process with respect to both the letter and the spirit of South Africa’s labour laws. An independent mediator has been used to facilitate all the discussions in the best interest of all affected parties,” it said in its statement.

    “The staff affected by this organisational restructuring has been limited to the management and specialist layers. Telkom engaged with labour on all elements of the process, including the timelines to be followed,” it said.

    “In line with these agreed upon timelines, each affected individual was given two opportunities to apply for positions, with the new structures. Staff were also engaged to suggest alternative options, such as the voluntary severance packages and voluntary retirement options.

    “At the end of September, the section 189 process was concluded for the affected staff. As per the agreed upon process, staff who had not been appointed into a new role by the end of September were at the end of the section 189 process and were therefore issued with notices of termination. The period of service for those affected individuals concludes at the end of October.

    “Throughout this difficult time, Telkom has always sought to pursue any reasonable measure to retain qualified and experienced staff. To this end, it has also informed all affected staff that they are eligible to apply for any roles that may become available through normal staff movement processes, such as resignations or transfers, during their notice month of October.

    “This offer is not part of the section 189 process, but is a separate action by the company as a final attempt to place affected candidates.”

    Telkom said the intention of the turnaround strategy is to secure its future sustainability. “There should be no doubt that the sustainable success of this company is largely dependent on both the attraction and retention of qualified, competent and experienced professionals,” it said.

    “Simply placing people into positions, regardless of their competencies, qualifications or experience just to avoid their retrenchment, would be a huge disservice to the business. While we respect labour’s right to protect their members, Telkom must place the right people in the right structures and roles.”  — (c) 2014 NewsCentral Media



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