Trade union Solidarity says it is concerned over ongoing retrenchments at mobile operator, MTN, with the latest cuts affecting approximately 578 employees.
MTN South Africa announced last week that it had begun a process “to reorganise” its MTN Business unit, by opening discussions with employees as it seeks to boost profitability.
MTN did not make it clear how many staff would be axed in this round of discussions.
The mobile operator however, said that in addition to making substantial investments in the development of its people, the unit also plans to attract new positions to its Business Unit.
Solidarity said it received a section 189 notice in which MTN advises that it was going to start a process to restructure its local business unit.
“MTN is constantly retrenching employees in an effort to ensure its long term sustainability. We believe the company should follow a different strategy rather than getting rid of valuable expertise all the time,” said Solidarity head of the communication industry, Marius Croucamp.
In August, MTN also initiated a section 189 retrenchment process which affected 847 members of staff in managerial positions, the trade union noted.
The company put forward as reason for the proposed retrenchments its poor returns and growth. During the past year, MTN has retrenched 476 employees, Solidarity said.
“Apart from lowered job security, retrenchments also lead to lowered production, which in turn, may result in further retrenchments. Solidarity will, therefore, focus on the well-being of employees during retrenchment consultations with companies within the industry,” Croucamp said.
It is unclear how many Solidarity members are affected by the latest retrenchments.