Telecommunications sector retrenchments continue

3rd November 2014 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Telecommunications sector retrenchments continue

Employees who have not yet been placed during JSE-listed Telkom’s restructuring process have until November 7 to apply for alternative positions in the group’s new, proposed structures.

This emerged as MTN finalised its own placement and Cell C undertook its own “clinical and cold”, but legal route, to shedding jobs to stay above water, trade union Solidarity said on Monday.

The union noted that the placement process for the 104 Telkom employees issued with retrenchment notices on October 1 had been finalised.

The union aimed to assist its members – which accounted for 14 of the 96 employees not yet placed – with the process of applying for alternative positions, Solidarity communication sector head of industry Marius Croucamp said in a statement.

“We want to see to it that all our members are placed in alternative positions and if they are not placed because of inadequate qualifications or training, that Telkom gives them the opportunity to receive the necessary training,” he said, adding that discussions with Telkom would start in the next month.

Meanwhile, MTN’s placement process had already been finalised.

In August, MTN said it planned to shed about 847 managerial staff by the end of October, owing to weak earnings and growth.

By mid-October, 200 MTN employees had accepted voluntary severance packages.

“Most of our members who are affected by the retrenchments have accepted voluntary retrenchment packages, while some members have been placed in alternative positions,” Croucamp said.

However, some Solidarity members, who had applied for alternative positions, continued with the interviewing process, which was expected to be concluded by the end of November.

At Cell C, Croucamp said eight Solidarity members had already applied for alternative positions, while some were awaiting feedback from management.

“Cell C is following a cold and clinical approach as far as the retrenchment process is concerned, but so far, it has acted according to the letter of the law,” Croucamp commented.

South Africa’s third-largest mobile operator confirmed last month that up to 190 jobs could be threatened as it started consultations on possible retrenchments owing to the restructuring of “certain areas” within the 1 458-employee-strong company.

Twenty-three employees had accepted provisional severance packages.