Telkom retrenchments to proceed

Telkom says it will go ahead with its planned restructuring process, following consultation with labour unions.

The telco had suspended its retrenchment process following an agreement with Solidarity, in mid-July.

Solidarity said that the suspension was as a result of the flawed process undertaken by Telkom, which did not gather sufficient input from unions regarding its retrenchment plans.

The union said at the time, that it expected the new proceedings to push back retrenchments by up to two months.

Telkom agreed to a facilitation of process with Solidarity which was made an order of the Labour Court.

Telkom said in a statement on Friday:

“After extensive facilitated consultations and deliberations, management and labour have, in the spirit of cooperation, reconciliation and acting in the best interest of all parties, reached consensus that the current restructuring process will proceed.

“The parties have agreed that the process of placing employees, and VSP/VERP’s for all management, will proceed next week.”

Telkom aims to reduce its management pool which will affect up to 2,650 managerial staff.

The company is looking to reduce the number of management layers and achieve an employee cost-to-revenue ratio of 25% over the next 5 years, from 30% currently.

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Telkom retrenchments to proceed