The Labour Court in Johannesburg will on Tuesday hear trade union Solidarity\u2019s urgent application to obtain an interdict against Telkom\u2019s planned job cuts.<\/p>\n
Last month, the telecommunications company announced that it plans to cut 4 400 jobs through voluntary severance packages or voluntary early retirement packages.<\/p>\n
Subsequently, the company entered into talks with unions.<\/p>\n
But those talks fell through after unions such as Solidarity accused Telkom [JSE:TKG] of turning its back on previous agreements regarding retrenchments.<\/p>\n
A dispute among unions was declared and Telkom roped in the the Commission for Conciliation, Mediation and Arbitration (CCMA) to facilitate a section 189 consultation process on Wednesday, July 8. Section 189 is a part of labour law that deals with retrenchments.<\/p>\n
\u201cThe trade union contends that Telkom is disregarding an agreement on restructuring processes it had concluded with trade unions in 2008,\u201d said Solidarity in a statement on Monday.<\/p>\n
\u201cIn terms of this agreement, Telkom has to meet with trade unions and an agreement has to be reached before a restructuring process may be embarked upon. The agreement also stipulates that should a dispute arise between parties within Telkom\u2019s restructuring forum, such a dispute must first be resolved before a retrenchment process may be embarked upon.<\/p>\n
\u201cAlthough trade unions on 19 June declared a dispute with Telkom over the retrenchment process, Telkom on 22 June carried on to issue a section 189 retrenchment notice to trade unions. In terms of this notice as many as 4 400 persons could be retrenched,\u201d said Solidarity.<\/p>\n
Telkom has previously said it plans to oppose the interdict.<\/p>\n
Meanwhile, Telkom is looking to cut jobs as its core voice business in particular comes under pressure. The company\u2019s fixed-line voice usage revenue decreased 13.5% to R6.867bn for the year ended March 2015.<\/p>\n
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