Telkom is offering workers a sweet deal to leave the company voluntarily – but it’s taking a massive chunk of cash to do so.
According to a report in the Sunday Times, the process will cost the company R1.1 billion.
Telkom is currently in the process of letting go around 4,400 workers. A further 3,400 workers are expected to be moved to outsourced companies.
Unions at the company have rejected the packages, but Telkom bypassed them and approached its workers directly with the offers.
As of the end of July, 2,400 workers had accepted the voluntary packages, which offered pro-rata share payouts, as well as five months’ notice pay.
The group is also offering two weeks’ pay for each of the first 10 years of service, and student loans and phone debts will be paid off.
According to the report, staff who accept the deal will also get R60,000 for further training or a taxable R40,000 lump sum.
In a previous statement in April, Telkom noted that its retrenchments would cost the company over R591 million, showing how much the group has since added to sweeten the deal.
You can read the full report in the Sunday Times of 2 August 2015.