Solidarity says that Telkom has officially acknowledged that it is contemplating retrenchment at managerial levels to achieve its goals.
The admission came in a meeting with trade unions, held on 25 April 2014.
The South African Communications Union (SACU) has informed its members that Telkom’s “management restructuring program” is aimed at improving “decision effectiveness”.
According to SACU, Telkom expects the restructuring to result in a 30% to 40% improvement in effectiveness over the next 3 years. The company will also aim to inject new management talent into the company.
Telkom announced that it will reduce the number of job levels in the company from 11 to 8. At this stage, the reduction of job levels will only affect managers.
SACU president Michael Hare noted that Telkom said that it expects up to 1,000 management job cuts over the next three years.
All managers will be informed by 12 May 2014 about the new job levels, and how it would affect them. The process is expected to be concluded within 2 months.
In response to the issue Telkom said that it “continues to review its operations to improve performance and create greater efficiencies”.
“The company is considering all options in all areas of the business that lend itself to cost containment including staff restructuring as part of the company’s turnaround strategy,” Telkom said.
CCMA arbitration proceedings regarding this issue are scheduled for the 13th of May 2014.