HUNDREDS of jobs at Telkom could be on the line after the agency “unilaterally” embarked on a restructuring process that resulted in employees being outsourced to two international companies on short-term contracts.
The Sunday Independent has been reliably informed that consultants at Telkom Direct stores throughout the country have been outsourced to two companies, Perx and Smollan.
However, employees have raised concerns about the manner in which the move has been conducted.
Some alleged that only black staff were affected by the current outsourcing process.
The Sunday Independent spoke to two sources who independently corroborated each other in their claims that only OP1 level employees were transferred, while branch managers were spared.
They further alleged that white employees who were on the OP1 level had their positions amended to ensure that they were not moved to the new companies.
“This is only affecting black people within Telkom. White people who were consultants on OP1 levels were given administrators jobs.
“The positions were never advertised for us to also apply.
“This was just to ensure that they are exempted from this,” said one employee, speaking on condition of anonymity.
Insiders also complained of a lack of consultation with the employees during the restructuring process.
The employees said they were only informed in late January that they would be reporting to a new employer from today.
“We were invited to a roadshow in late January but we did not know what it was about.
“When we got there we were told that we are being outsourced and would be going to the new employer from April 1.
“They said the move was done through a section 197,” said one aggrieved employee.
The employees, who were permanently employed by Telkom, said that when they asked questions, they were not given satisfactory answers.
They further claimed that some of them were offered one-year contracts and others three-year contracts.
They were also allegedly denied the option to take severance packages, having been told they still required their skills and expertise.
“We don’t know what will happen beyond those contracts. We asked if we could get our packages but we were told ‘no’. We also questioned why managers were not being outsourced but we were not given answers,” said the employee.
Telkom spokesperson Nomalungelo Faku was adamant that the company conducted the section 197 process in line with the applicable laws and prescripts. The law requires the new employer to retain the benefits of the previous employer and ensure they don’t get less favourable benefits.
“We can confirm that 220 Telkom employees, currently working in the Telkom stores, will be transferred to Smollan and Perx with effect from April 1, with Telkom having followed the necessary consultation process as outlined in section 197 of the Labour Relations Act.
“Employees will be transferred with no less favourable conditions and benefits as their current employment benefits,” she said.
Faku added that outsourcing was implemented after careful consideration of the interests of all staff and the long-term sustainability of the company.
“It is only one of the measures Telkom has implemented over the past four years as part of its successful turnaround.
“As per our 2017 financial year-end results, Telkom had a permanent staff count of 18552 as at March 31, 2017,” she said.
Faku did not respond to questions relating to the alleged preferential treatment of whites and employees being offered short-term contracts.
Smollan’s Monique Yaffe confirmed that the company had been appointed as Telkom’s preferred partner.
She said under the conditions of section 197 of the Labour Relations Act, the affected Telkom staff would be transferred to Smollan from today, on terms and conditions that are no less favourable than their current terms.
She confirmed that the company had not yet met the employees, and they would only be meeting them after they had joined.
She referred all questions to Telkom.
“Smollan has scheduled engagement sessions with affected employees post-April 1 to welcome (the staff) on board.
“Since Telkom is the current employer until March 31, kindly refer all related questions of employee consultations to Telkom,” Yaffe said.
The employees also questioned how they could be working for one company yet be reporting to another.
“We now have a situation where two companies are operating from one building.
“We will work for Smollan but be reporting to a Telkom branch manager,” they said.
Another source said the person who signed off on the deal has since resigned from Telkom, raising more questions regarding the unjust contracts offered to them.
“I feel as though they are using a section 189 to retrench us but they are hiding behind a section 197.
“This is a forced a retrenchment and they don’t want to pay what is due to us.
“They need to be transparent regarding the entire process and we should be given a choice to either take a severance package or work for the new companies,” said the employee.
This is the second outsourcing project that has left workers fuming. The Sunday Independent reported last weekend that Telkom had awarded a R755million security contract to three companies and two of them outsourced Telkom’s investigators.
After the report, two managers who were responsible for two of the companies getting a share of the lucrative contracts were suspended for their role in the matter.
Faku declined to divulge the reasons stipulated when the managers were served with suspension letters and also failed to confirm their suspensions. “Telkom views all allegations of irregularity in its procurement processes seriously and will take the necessary action against anyone found guilty of violating them.”
Labour relations consultant Tony Healy cautioned the new employer against unilaterally changing terms of employment.
He said section 197 stipulated that if an employer sold part of its business that included subcontracting, then the buyer or subcontractor automatically became the new employer.
“They must take on those employees and obligations of the old employer.
“They must do so on terms and conditions of employment that are substantially the same as those that existed prior to taking over.
“It doesn’t have to be the same but it can’t be materially different. If you change my salary 5%, that is not materially different, but if you make me work six days a week, that is materially different.
“If you move me from permanent to temporary, that is materially different. If they offer materially different terms of employment, then the buyer will have a problem. They can’t do that,” he said.
Healy added one important aspect of section 197 was that the old employer remained liable for any retrenchment that took place within 12 months of the takeover.
He added that the workers have a right to seek retrenchments if they don’t agree with the new terms of employment and the employer must agree.
He also questioned the logic behind the outsourcing of workers and keeping their managers who they would still have to report to. “To move someone from permanent to temporary is a huge material change.
“They have a right to accept or reject the temporary contract.”