Telkom CEO tells staff: retrenchment halt order a ‘temporary setback’
Telkom CEO Sipho Maseko has told employees that despite the court order to withdraw its Section 189 notices to unions, the group’s drive to restructure will continue.
In its latest turnaround strategy, dubbed ‘Telkom 2.0’, the fixed line operator announced that it plans to cut 4,400 jobs through voluntary severance packages or voluntary early retirement packages.
Subsequently, the company entered into talks with unions including trade union, Solidarity.
Those talks fell through after Solidarity accused Telkom of turning its back on previous agreements regarding retrenchments, and the matter ended up before the Labour Court of South Africa.
Solidarity pointed out that Telkom had ignored an agreement on restructuring processes it had concluded with trade unions in 2008.
In terms of this agreement, Telkom has to meet with trade unions and reach a settlement before the company may embark on a restructuring process.
Although the unions had declared a dispute with Telkom on 19 June over the planned retrenchments, Telkom continued to issue a section 189 retrenchment notice to trade unions on 22 June.
On Wednesday (8 July) the Labour Court ordered Telkom to withdraw the Section 189 notices which were issued to organised labour, resulting in the process being halted altogether.
According to Maseko, the net effect of organised labour’s application to the Labour Court is that it has caused a delay in the process of consultation.
“We have adhered to the Court Order by formally withdrawing the Section 189 notices issued to organised labour, thereby stopping the Section 189 process altogether,” Maseko said in an email to employees.
“Although the events of yesterday is a setback, it is only a temporary stay in our attempt to steer the company towards a financially sustainable future.”
Maseko had previously stated that he wanted to “press on” with the company’s transformation process “and get this done as quickly as possible”.
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