Telkom and unions kiss and make up
Telkom has announced the conclusion of its substantive negotiations with trade unions the Communications Workers Union (CWU), the South African Communications Union (Sacu) and Solidarity.
This would mark an end to the dispute which began in March, after Telkom announced that management and bargaining unit staff would be afforded the opportunity of applying for voluntary severance packages (VSPs) and early retirement packages (VERPs) until the end of August 2013.
The company said on Monday (5 August) that it met with Sacu to sign the three year labour agreement, effectively launching Telkom into the implementation phase of the agreement.
“Sacu’s support of the agreement is indicative that the majority of employees are in favour of the agreement,” it said in a statement.
“It is encouraging that our employees are willing to support the Company’s initiatives to ensure cost effectiveness and the sustainability of our business. Our determination to close the wage disparities has not gone unnoticed,” said Telkom Group CEO, Sipho Maseko.
According to Telkom, the agreement, effective for a three-year period from 1 April 2013 to 31 March 2016, will assist the company on its journey to restoring financial health and ensuring long-term sustainability by eliminating uncertainties over labour costs for the next three years.
“We appreciate the role that labour has played in facilitating this agreement and note the willingness to work together for the good of our employees and the organisation. We look forward to ongoing engagement with labour to address productivity initiatives and interventions,” Maseko said.
Telkom said it has received written confirmation from Solidarity to proceed with the implementation of the agreement and an official signing ceremony was held recently with CWU.
Telkom said it has initiated the implementation process which will entail a special payroll run and the payment of part of the back pay effective from 1 April 2013 by August 7, 2013 with the rest being paid out onAugust 23, 2013.
The following principles of the agreement will now come into effect over the next three years:
- The general salary increase will be based on 6% of the market’s 50th percentile as per employee functional area;
- Those employees below the 50th percentile of the market will receive an additional amount added to their total package;
- All employees below the 75th percentile of the market will receive an increase on their total package;
- All employees above the 75th percentile of the market on 31 March 2013 will receive a monthly pensionable once-off amount (no increase in their total package);
- The standby allowance will increase by 6%.
Telkom said it has undertaken to further engage organised labour if the Consumer Price Index (CPI) moves above 7.5% and remains at that level for a minimum period of six consecutive months during the effective period of this agreement.
The telco said it has also undertaken to conduct external salary benchmarking and share the results with the trade unions prior to implementing salary increases in the second and third year.
Depending on whether the market 50th percentile reduces or increases, the status quo will either remain or revised values will be applied.
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