Telkom said in a statement on Tuesday, 8 July 2014 that it rejects allegations that race is being considered as the only criteria for the placement of employees in Telkom\u2019s new structure.<\/p>\n
\u201cThe fact is that Telkom\u2019s focus is on retaining the right skills for its turnaround strategy and will consider several criteria throughout its restructuring process,\u201d Telkom said.<\/p>\n
Employment equity is one of the four criteria applied to the restructuring, Telkom said, adding that just like any South African company it is required to comply with the Employment Equity Act.<\/p>\n
The other three criteria are:<\/p>\n
Telkom re-iterated that allegations that it will fire 9,500 employees in the next six months are unfounded.<\/p>\n
\u201cIn fact, the entire management pool that Telkom seeks to reduce from, in the consultative process currently underway, is made up of 2 650 managerial staff,\u201d the company said.<\/p>\n
\u201cThe company is not targeting specific numbers of individuals,\u201d Telkom said. \u201cIt aims to reduce the number of management layers and achieve an employee cost-to-revenue ratio of 25% over the next 5 years.\u201d<\/p>\n
According to Telkom, its employee costs currently make up 30% of its revenue.<\/p>\n
Telkom said it undertook a thorough review and investigation of all options before deciding to issue a Section 189 notice.<\/p>\n
These include:<\/p>\n
\u201cThis restructuring process is an imperative for the survival of the business into the future and its success,\u201d Telkom said.<\/p>\n
In a frank admission, Telkom said that it has under-performed for several years as its share of market in fixed voice and data continues to decline, while fixed-to-mobile substitution has intensified competition.<\/p>\n
\u201cThe fixed voice market makes up more than half of Telkom\u2019s revenues, and is in decline,\u201d the company said.<\/p>\n
\u201cThe intention is to build the right organisation for the future by improving the business performance and unlocking efficiencies,\u201d Telkom said.<\/p>\n
\u201cThe company will continue to explore other avenues that can assist with cost reduction in all areas of the business.\u201d<\/p>\n
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