Johannesburg - Telkom’s conclusion of a new two-year collaborative partnership agreement with organised labour does not include the company’s largest union the Communications Workers Union (CWU).
The deal has been signed with the SA Communications Union and Solidarity.
The CWU told Independent Media it did not agree to certain aspects of the agreement presented by Telkom and the two other unions recognised by the fixed-line operator to reporters on Tuesday.
CWU general secretary Aubrey Tshabalala said, before the union signed anything, Telkom would first have to agree to stop outsourcing, and that there be no retrenchments for two years. The union also wanted a 13th cheque.
“We do not agree with certain parts of the agreement; however we are working closely with Telkom. We are not far apart from coming to an agreement with them,” said Tshabalala.
Telkom will not implement forced retrenchments for the next two years.
Read also: Telkom pauses on retrenchments
However, Telkom’s statement on the wage deal says CWU has agreed to the new partnership agreement in principle. “Currently one legacy matter, which is unrelated to the new partnership agreement, is in arbitration. Telkom looks forward to closing out this agreement with the CWU.”
In terms of the deal, Telkom will not give give workers an annual increase for this year. Instead it plans on implementing a widespread performance-based remuneration plan which could see employees earning up to 12 percent more each month.
For 2016, staff will get a 6 percent increase. Inflation is currently at 6.2 percent.
Read also: Telkom earnings increase by 15%
“Our turnaround strategy has allowed us to stabilise the business. The next chapter of the Telkom story must be one of growth and growth requires us to be better at attracting and retaining customers,” said Telkom CEO Sipho Maseko.
The company this week announced a 15.5 percent rise in normalised headline earnings for the year to March 31, marking the conclusion of a three-year turnaround strategy implemented in 2013.
Telkom reported 3 878 job cuts and reduced losses at its mobile business during the financial year. Normalised headline earnings per share (HEPS) increased to 658c, while operating revenue gained 13.9 percent to R37.3 billion.
“The past three years have been hard on our people but with the turnaround behind us, we must look to the future with confidence. This agreement with organised labour is the result of many months of hard negotiations and extensive consultation. The open and transparent approach of organised labour has helped us achieve this important milestone,” said Maseko.
Telkom wants the agreement to cover its 11 000 unionised employees. It will not include workers in its subsidiaries such as Business Connexion and Trudon.
Solidarity has declared itself “thrilled” with the deal. In a statement Marius Croucamp, deputy general secretary of the communication industry, says “as a union we are pleased with the manner in which this year’s negotiations have panned out. Our members at Telkom have been faced with various challenges over the past few years and we hope this agreement will herald a new era of labour relations with Telkom.
LABOUR BUREAU