MTN retrenchment process highly suspect: union
Solidarity has labeled MTN’s retrenchment process as ‘highly suspect’, accusing the operator of trying to avoid consultation with the union.
MTN sent out an employee section 189 letter stating that it is contemplating possible dismissals due to operational requirements, based on its structural changes at various management levels.
MTN said it is faced with “significant performance challenges”.
“At this stage, we contemplate that 847 Management layer Employees, across the company are likely to be affected,” it said.
Solidarity said on Thursday (28 August) that it is still waiting for MTN to set up a meeting regarding the retrenchments.
“The process is highly suspect, as MTN tries to avoid consultation with Solidarity,” the union said.
The union further pointed out that MTN has a legal obligation to meet with registered trade unions whose members are affected by the planned retrenchments.
It said it will request that the CCMA facilitate the retrenchment process under section 189A of the Labour relations Act.
According to Solidarity, MTN failed to inform staff that if they belong to a registered trade union they have the right to union representation.
The union said it will place MTN on legal terms regarding consultation process.
According to the section 189 document, MTN has 6,196 employees in SA, with 138 employees having been retrenched by the group over the last twelve months preceding the latest proposed retrenchment round.
Solidarity said that MTN has retrenched a total of 885 workers in 2012 and 2013, although MTN group president and CEO, Sifiso Dabengwa, has stated previously that the majority of those were contracted employees.
Themba Nyathi, chief human resource officer at MTN SA said in a statement earlier this week:
“As part of this process, and as announced in our interim results on 7 August 2014, MTN SA will continue to review its cost structures, including employee costs, to ensure better alignment with revenue performance and the changing needs of the business and our clients.
“To deliver on this commitment, MTN SA has begun a process of internal staff consultations on a proposed organisational restructuring for better efficiencies. This process and the proposals are at a very early stage and we will update the market as key decisions are made.
“This is part of the on-going process of renewal that allows us to deliver the strategic investments, product innovations and new services our customers expect and so ensure MTN’s sustained competitiveness in this rapidly evolving market.”
MTN said it hoped to complete the consultation process by 30th September 2014.
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