MTN: Solidarity to be consulted on job cuts

CELLULAR network operator MTN and Solidarity would meet over the company’s plans to retrench managerial staff, the trade union said on Friday. “This comes after the cellular operator initially failed to duly consult about the retrenchment process,” Solidarity’s communications industry spokesman, Marius Croucamp, said. The meeting between the two was expected to take place today. On Monday last week MTN said it had begun a process of internal staff consultations on a proposed organisational restructuring for better efficiencies. Chief human relations officer Themba Nyathi said the consultation was still at an early stage and the market would be informed when key decisions had been made. “This is part of the ongoing process of renewal that allows us to deliver the strategic investments and product innovations,” he said. The process would also allow provision of new services and ensure MTN’s sustained competitiveness in a rapidly evolving market. It was not immediately clear when the retrenchments would take place. Croucamp said MTN’s willingness to consult with Solidarity was a step in the right direction. Solidarity was moreover positive that the meeting would shed more light on the actual extent of the retrenchment process, he said. MTN shares dropped 1.25 percent to close at R241.04 on the JSE on Friday. – Sapa