More Telkom retrenchments on the way: union

Trade union Solidarity says that Telkom had issued a notice of retrenchment that could affect 554 posts.

“In the retrenchment notice Telkom states that around 300 jobs at its Corporate Office will be affected by the process. It is also intended to transfer 254 employees to another company in compliance with section 197 of the Labour Relations Act,” Solidarity deputy general secretary Marius Croucamp said.

According to Croucamp, it is the tenth consecutive year that Telkom workers are affected by job cuts.

Telkom’s notice also stated that it intends to close its regional Centre for Learning facilities – only retaining its Gauteng operations.

“Approximately 48 employees across all levels may possibly be retrenched as a result,” stated the notice.

Telkom reported in November that its voluntary severance and retirement program had cost the company R1.52 billion, affecting 3,108 employees.

Telkom’s staff count in 2015 was put at 18,333 – down from 19,197 in 2014, and 21,209 in 2013.

CEO, Sipho Maseko said in an annual report for 2015, that the company aimed to have a staff cost to revenue of at least 25% within the next four years.

The company spent R7.2 billion on salaries and wages  last year.

Telkom did not get back to BusinessTech with comment by the time of publication.

Updated: Telkom’s response

As part of Telkom’s multi-year turnaround, the company today announced a restructuring of its corporate centre, through a Section 189 process.

Telkom yesterday informed unions of its intention to pursue a Section 189 process, within its corporate centre, which may impact approximately 300 people. In addition to this, Telkom plans to outsource in the region of 260 roles in its shared service environment through a parallel Section 197 (outsourcing) process. The Section 197 process involves the outsourcing of roles and no jobs will be lost.

Telkom’s first CCMA facilitated consultation on the current Section 189 process will begin on 8 March 2016.

“We have made important progress on our turnaround in the past two years but we still have a lot to do. We have to change and improve the way we work and how we deliver products and services to our customers. Our new operating model is driving this and while these changes are never easy, the streamlining of our corporate centre is an important step in delivering a sustainable and growing Telkom”, said Sipho Maseko, Telkom Group Chief Executive Officer.

More on Telkom

Telkom profit hit by retrenchments

Telkom retrenchments cost R1.5 billion

New details emerge on Telkom retrenchments

Court halts Telkom retrenchments

Must Read

Partner Content

Show comments

Trending Now

Follow Us

More Telkom retrenchments on the way: union