The Communication Workers Union (CWU) has not received formal notification from Neotel that it plans to retrench workers, a union spokesman said on Friday.

“As the situation stands, CWU has not yet formally received any Labour Relations Act section 189 notice to the effect that the company is intending to engage in consultation,” said Matankana Mothapo in a statement.

Section 189 deals with how retrenchments should be carried out when they are made for operational reasons.

Last year, telecommunications operator Neotel said it was considering “realignment and restructuring” as it evaluated its business strategy.

“Neotel is in the process of evaluating its business strategy, operational performance, efficiency and competitiveness with a view to ensuring that long-term sustainability is achieved,” it said in a statement in December.

It was sent in response to questions about allegations the company was planning to fire staff in light of tough economic conditions and strong competition.

CWU, which Mothapo said represents about 200 Neotel workers, had not yet heard anything from the company.

“As CWU, we have learned through our members in the last quarter of 2010 that there are moves by the company management aimed at restructuring.”

Mothapo said the union had on Friday written a letter to Neotel demanding it be invited to consultation, as provided for by law. He threatened action if the union did not receive the desired response.

“This would not rule out the possibility of approaching the labour court for an interdict in an effort to stop any illegitimate, unlawful and illegal mass dismissal process.”

The union had not given the company a deadline to respond to its letter, but Mothapo told Sapa: “We’ll take action very soon”.

“We, however, hope that the company will respond positively to our demand to be consulted to avoid any job loss blood bath that would have catastrophic consequences in an economy that has already shed over 1m jobs in the past two years, while it does not create any new quality jobs.”

When asked if CWU was recognised by Neotel, Mothapo said the union had an “agreement” with the company.

In December, Business Day reported that a letter sent to staff, which was leaked to TechCentral, quoted Neotel’s head of human resources Lucky Ndwalaza saying that “realignment and rightsizing of headcount” was required. This was intended to ensure the company was competitive, able to meet its targets, and had an optimal cost-to-revenue ratio.

TechCentral wrote that according to Ndwalaza’s letter, Neotel would consult staff in January and February, with retrenchments likely to follow in late April.

Neotel is controlled by India’s Tata Communications and provides wireless and fixed-line voice and data services.

Neotel did not immediately respond to telephone or e-mail requests for comment. — Sapa