Trade union Solidarity says it is concerned over ongoing retrenchments at mobile operator, MTN, with the latest cuts affecting approximately 578 employees.<\/p>\n
MTN South Africa announced last week that it had begun a process \u201cto reorganise\u201d its MTN Business unit, by opening discussions with employees as it seeks to boost profitability.<\/p>\n
MTN did not make it clear how many staff would be axed in this round of discussions.<\/p>\n
The mobile operator however, said that in addition to making substantial investments in the development of its people, the unit also plans to attract new positions to its Business Unit.<\/p>\n
Solidarity said it received a section 189 notice in which MTN advises that it was going to start a process to restructure its local business unit.<\/p>\n
\u201cMTN is constantly retrenching employees in an effort to ensure its long term sustainability. We believe the company should follow a different strategy rather than getting rid of valuable expertise all the time,\u201d said Solidarity head of the communication industry, Marius Croucamp.<\/p>\n
In August, MTN also initiated a section 189 retrenchment process which affected 847 members of staff in managerial positions, the trade union noted.<\/p>\n
The company put forward as reason for the proposed retrenchments its poor returns and growth. During the past year, MTN has retrenched 476 employees, Solidarity said.<\/p>\n
\u201cApart from lowered job security, retrenchments also lead to lowered production, which in turn, may result in further retrenchments. Solidarity will, therefore, focus on the well-being of employees during retrenchment consultations with companies within the industry,\u201d\u00a0Croucamp said.<\/p>\n
It is unclear how many Solidarity members are affected by the latest retrenchments.<\/p>\n
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