Telkom to retrench thousands more workers: union

·9 Jun 2015

Worker union Solidarity says that Telkom is planning on retrenching thousands of workers over the next two months.

According to a statement issued by the union on 9 June, Telkom has announced plans to cut its workforce by 4,400 through voluntary severance packages and voluntary early retirement packages.

Another 3,400 permanent employees and contract workers will be transferred to other companies.

The numbers were announced at an information session held in Olifantsfontein on 9 June, the group said.

Earlier this year, 724 employees accepted packages at Telkom, in addition to 1,170 employees who had been transferred through section 197 business transfer processes, as several business portfolios within the company had been outsourced.

“If this new target is not met, forced retrenchments will follow in July to attain the desired number,” said Solidarity.

Telkom has so far reduced its overall headcount to 18,333 workers, from 19,197 in 2014.

“In February this year, Solidarity warned that major job cuts were looming,” said Marius Croucamp, Head of Solidarity’s Communications Industry.

“We have been pressuring Telkom since the beginning of this year to come clean regarding the number of people that will be affected and we are still questioning whether this drastic action will put the company on a sustainable path.”

“If Telkom carries on in this vein, an empty shell is all that will remain of the company, and the inadequate service delivery that we are already experiencing will worsen as it will actually be the skilled employees that will be deterred by this major uncertainty,” he said.

Telkom was asked for comment regarding the retrenchment figures, but did not respond by time of publication.