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Telecommunications group MTN plans to shed about 847 managerial staff by the end of October owing to weak earnings and growth, trade union Solidarity announced on Monday.
Solidarity head of the communications Marius Croucamp said in a statement that employees were alerted of MTN’s planned retrenchment programme in a Section 189 notice on Friday.
MTN chief resource officer Themba Nyathi said the move formed part of the company's continued review of its cost structures, including employee costs, to ensure "better alignment" with revenue performance and the changing needs of the business and its clients.
"MTN South Africa has begun a process of internal staff consultations on a proposed organisational restructuring for better efficiencies. This process and the proposals are at a very early stage and we will update the market as key decisions are made."
Solidarity also slammed MTN’s failure to mention in its letter that registered trade unions may represent their members during the layoffs.
“Solidarity will meet with the company’s management regarding the planned layoffs shortly. We will then officially raise objections to the employer’s failure to inform employees that they are entitled to receive assistance from their trade unions during the process,” said Croucamp.