Telkom agrees to no forced retrenchments for the next two years

Telkom has completed its two-year Collaborative Partnership Agreement with organised labour at the company.

The agreement will allow for the introduction of performance-based remuneration and eliminate forced retrenchments for two years, and has been signed by the South African Communications Union and Solidarity.

The Communications Workers Union has agreed to the new agreement in principle, said Telkom.

“The agreement covers Telkom’s 11,000 unionised employees, out of a total head count of just over 13,500, but does not include employees in Telkom subsidiaries, such as Business Connexion and Trudon,” said Telkom.

Currently, Telkom has around 12 500 employees.

The agreement contains a number of commitments from Telkom, which are:

  • No forced retrenchments for the next two years.
  • Outsourcing to be limited to less than 1,000 employees over the next two years.
  • The introduction of a variable incentive plan, “Performance Pays”, which will replace the previous Short Term Incentive plan.
  • An employee who is achieving their targets can expect to earn approximately 6% more than last year, with further upside for over-achieving employees.
  • An increase of 6% on basic salary payable from 1 April 2017.

No annual increase this year

Telkom said it will not offer any employee an annual increase this year, but the company is “offering employees the opportunity to earn up to 12% more each month, should they meet and exceed sales and customer service targets”.

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Telkom agrees to no forced retrenchments for the next two years