The South African telecoms sector faces a fresh wave of mass lay-offs as companies grapple with protracted strike action, lower financial returns, and increasing competition, among other things.<\/p>\n
Business Report noted that MTN<\/strong> is set to start a new series of retrenchments, affecting ‘hundreds of jobs’ amid a strike by more than 2,000 employees that has dragged on for more than eight weeks.<\/p>\n Communication Workers Union (CWU) members at MTN have been striking since May 20, calling for a wage increase and bonuses.<\/p>\n The report cited unnamed sources close to the company, while MTN declined to comment because it is in a closed period.<\/p>\n On Monday (13 July),\u00a0Telkom<\/strong> CEO Sipho Maseko said that the listed operator\u00a0will freeze wage bills as it continues to engage with unions on its plans to reduce its staff content.<\/p>\n In its latest turnaround strategy, dubbed \u2018Telkom 2.0\u2032, the fixed line operator wants to cut 4,400 jobs through voluntary severance packages or voluntary early retirement packages.<\/p>\n Last week however, 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 Maseko stressed that the company cannot continue the way it has. \u201cThere is still a\u00a0fragility in our financial structure. There is still quite a lot working against us,\u201d he said.<\/p>\n He noted that competition \u201cis getting very\u00a0fierce\u201d, pointing\u00a0particularly\u00a0to a merger deal between Vodacom, and fixed line operator, Neotel.<\/p>\n The company 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\u2019s staff.<\/p>\n Vodacom<\/strong> meanwhile, announced on Tuesday, that it is planning to outsource maintenance to cut costs, although it stressed that no jobs would be lost.<\/p>\n “Vodacom is investigating the possibility of consolidating existing outsourced maintenance contracts and potentially outsourcing some of our field maintenance activities,” spokesman Richard Boorman told Reuters.<\/p>\n “There would be no job losses if the envisaged changes go ahead,” Boorman said.<\/p>\n South Africa’s third largest mobile operator, Cell C notified its employees in May that it plans to\u00a0embark on a restructuring process which could lead to job losses.<\/p>\n Cell C said in a statement: \u201cCell C confirms that it has commenced the process of consultation in respect of possible retrenchments.”<\/p>\n “At this time, and subject to consultation with the affected employees, this process could affect up to 47 employees whether through retrenchment or redeployment.”<\/p>\n Telkom CEO announces wage freeze<\/a><\/strong><\/p>\n Cell C restructuring could see job cuts: union<\/a><\/strong><\/p>\n\n
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