Telkom CEO Sipho Maseko says that the listed operator\u00a0will consider a wage freeze as it continues to engage with unions on its plans to reduce its staff content.<\/p>\n
The salary freeze would extend to management. “Management must taste first, the medicine,” Maseko told media\u00a0in Rosebank,\u00a0Johannesburg on Monday.<\/p>\n
“I can’t see it applying any other way,\u00a0across\u00a0the board.”<\/p>\n
In its latest turnaround strategy, dubbed ‘Telkom 2.0’, the fixed line operator announced that it plans to cut 4,400 jobs through voluntary severance packages or voluntary early retirement packages.<\/p>\n
However, on Wednesday (8 July) the Labour Court ordered Telkom to withdraw the Section 189 notices which were issued to organised labour, resulting in the process being halted altogether.<\/p>\n
\u201cWe have adhered to the Court Order by formally withdrawing the Section 189 notices issued to organised labour, thereby stopping the Section 189 process altogether,\u201d Maseko said last week.<\/p>\n
\u201cAlthough the events of yesterday is a setback, it is only a temporary stay in our attempt to steer the company towards a financially sustainable future.\u201d<\/p>\n
On Monday, Maseko reiterated that the company cannot continue the way it has. “There is still a\u00a0fragility in our financial structure. There is still quite a lot working against us,” he said.<\/p>\n
He said that the company needs to strip out at least R1 billion a year, noting that with earnings remaining relatively flat, the\u00a0company\u00a0needed assess its costs.<\/p>\n
He noted that competition “is getting very\u00a0fierce”, pointing\u00a0particularly\u00a0to a merger deal between Vodacom, and fixed line operator, Neotel.<\/p>\n
Maseko said that the business was committed to engage with organised labour.\u00a0He said that Telkom would hope to meet up with trade unions later this week or early next week.<\/p>\n
However, he said that the\u00a0company\u00a0cannot stand still, and has therefore implemented a number of cost cutting measures including:<\/p>\n
Maseko said that as of Monday, the\u00a0company\u00a0would\u00a0offer voluntary severance and early retirement packages for non unionised staff, which makes up between 40%-45% of the company’s staff.<\/p>\n
Telkom CEO tells staff: retrenchment halt order a \u2018temporary setback\u2019<\/a><\/strong><\/p>\n Telkom retrenchment saga heads to labour court<\/a><\/strong><\/p>\n What it feels like to be retrenched<\/a><\/strong><\/p>\n Telkom bites back at unions over retrenchments<\/a><\/strong><\/p>\n