Planned Telkom/KT deal welcomed by Solidarity
A planned deal between parastatal Telkom and South Korean telecommunications company KT Corporation may benefit employees, trade union Solidarity said on Tuesday (15 May 2012).
“In Korea, KT focuses on creating a flexible working environment for its employees through flexitime, flexi workplaces and ‘virtual offices’,” said Solidarity spokesman Marius Croucamp in a statement.
“These virtual offices enable employees to find a better balance between work and family life.”
In terms of the proposed deal, KT would acquire a 20 percent stake in Telkom.
Government is Telkom’s majority shareholder with 39.8 percent of the shares, while the Public Investment Corporation holds a 10.9 percent stake, according to Telkom’s website.
Croucamp said KT was a respected company which could benefit South Africans.
“KT played a big role in turning South Korea into one of the countries with the fastest and most expansive internet connections worldwide.
“The company’s expertise and experience could therefore be a boon to both Telkom and South African society.”
Although Solidarity welcomed the deal, it would closely monitor its potential effect on jobs.
“Solidarity will still keep a close watch on the developments, as there is always a risk of job losses when a company adapts its management style and/or upgrades its equipment.”
The deal still needs the approval of government and South African regulatory bodies.
When the deal was announced in October last year, the Communication Workers’ Union and Congress of SA Trade Unions condemned it, saying it could lead to job losses and worse service for the poor.
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