Telecoms group MTN has sent out a Section 189 retrenchment notice to employees as it embarks on a new restructuring process in its business.<\/p>\n
According to the notice, the company is repositioning itself in the market and shifting strategies to be a digital service provider – not just a telecommunications company.<\/p>\n
To achieve this, it said, some positions within the company’s finance department are changing to align with the strategy. These changes will affect the jobs of 327 level 1 and level 2 employees in the department (8.6% of total employees).<\/p>\n
The company said that no final decision has been taken on the process, as it will still engage with workers on the matter; however, it said that the process may ultimately result in the reduction of 136 employees (3.6% of total employees).<\/p>\n
“Once the consultation process around the proposed structure is concluded, all impacted employees in the level 1\/level 2 structure will have an opportunity to apply for new and\/or available positions,” it said.<\/p>\n
If there is a need to retrench as a last resort, the company said that it will look to early retirement and voluntary severance packages first, or find alternative positions for workers within the company.<\/p>\n
It will also consider retrenched employees for preferential re-employment for a period of three months from the date of retrenchment.<\/p>\n
Union Solidarity slammed MTN’s notice, calling the company ‘immoral’ for considering retrenchment while many workers are suffering under the current economic climate.<\/p>\n
“MTN\u2019s behaviour towards its employees is immoral, and in times when inflation and fuel prices are skyrocketing, and even people who are lucky enough to have a job are struggling to keep their heads above water, the company is playing with people\u2019s lives,” it said.<\/p>\n
The union pointed to the company posting over R14 billion in profit in the last financial year and exceeding all of its targets – yet still insisting on cutting its workforce.<\/p>\n
“To dismiss such a significant number of your labour force despite billions in profits that even exceeded the company\u2019s own expectations paints a glaring picture of South African society and the role large companies like MTN play in it,” the union said.<\/p>\n
Solidarity said it would challenge the retrenchments.<\/p>\n