The Communication Workers Union (CWU) has on Thursday (February, 16) lambasted Telkom (TKG) as ‘irresponsible’ and ‘negligent’ amidst its high profile judicial proceedings with the Competition Tribunal.
The telecommunications group is awaiting the outcome from a case brought against it by anti-trust regulator, the Competition Commission for excessive pricing and abuse of market dominance dating back to 2004.
The Competition Tribunal heard closing statements on Wednesday and is set to rule on the matter in due course.
The Competition Commission asked the tribunal to fine Telkom R1.2 billion if it was found guilty, having originally asked for a penalty of R3.5 billion, or 10% of the group’s earnings.
In its closing statements, Telkom asked for a penalty of R20.5 million, if found to be guilty.
Matankana Mothapo, National Spokesperson for the CWU told BusinessTech: “Telkom has not being doing well for some time (financially) and has been irresponsible and negligent in this matter. We are going to make sure that we defend the job security for our workers.
“It is our view that Telkom is in a shambles, and we may see the collapse of this company very soon. We must protect our workers.”
Mothapo said that the CWU would take up the matter with Telkom and the Department of Communications.
In its results for the six months ended September 2011, Telkom announced operating revenue of R16.4 billion.
Operating expenditure increased 8.2% to R15.382 billion, with employee expenses at R4.8 billion.
“Our labour productivity has room to improve, while we deal with an ageing workforce.
‘We have continued optimising staff vacancies through natural attrition and have been actively managing overtime and contractors spend in order to manage costs as far as possible,” group CEO Nombulelo Moholi said at the time.
Shares in Telkom hovered around the R27 level in early afternoon trade on the JSE, having slipped 3% over the past few sessions.