Johannesburg - Telkom has agreed to a two-year retrenchment freeze as the company steadies itself for growth after a turnaround programme that saw it shed thousands of jobs.
Telkom has concluded a partnership agreement with trade unions, SA Communications Union (Sacu) and Solidarity. The company said the Communication Workers Union (CWU) had agreed to the deal “in principle”.
Read: CWU close to inking Telkom deal
Telkom has reduced its workforce from more than 20 000 three years ago to about 12 500, according to chief administration officer Ian Russell. The retrenchments have set the company and unions on a collision course.
“There are no forced retrenchments within Telkom for the next two years. We will limit any further outsourcing of people over the next three years,” said Russell. He said Telkom would limit outsourcing to less than 1 000 employees in the next two years.
The agreement with the unions also includes a guaranteed 6 percent salary increase in April next year.
Russell said the company had also come up with measures to motivate and reward employees if they exceeded sales and customer service targets. “We are talking about changing the remuneration profile to one that is more focused on customer satisfaction.”
Telkom said that while the company would not offer employees an annual increase this year the workers could earn as much as 12 percent more each month if they met and exceeded the sales and customer targets.
Telkom chief executive Sipho Maseko yesterday said the negotiations with the unions were open and authentic.
“The trade unions represented their constituencies as aggressively as they could. There was no doubt that all of us wanted to do what is right for the company.
“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.
“Together, we are now in a position to regularly reward employees who have the right attitude and who truly extend themselves, to always put the customer first.”
Solidarity deputy general secretary Marius Croucamp yesterday said the union was happy with the agreement as it would ensure stability and job security for the workers.
“As a union we are pleased with the manner in which this year’s negotiations have panned out,” Croucamp said.
Chief executive at Pan African Investment and Research Iraj Abedian said: “It is good for the employees that Telkom has made a commitment not to retrench anyone in the next two years. Telkom has offered good incentives to its employees and they are prepared to pay them more.”
However, Abedian cautioned that this move might disadvantage Telkom in the long run because the company might lose its best personnel due to early retirement. “The younger and skilled employees might take voluntary packages and get employment somewhere.
“If that happens this might leave Telkom with not so competent staff and the company might be the one being disadvantaged by this agreement in the long run.”
* With additional reporting by Sandile Mchunu
BUSINESS REPORT