Telkom agrees to suspend restructuring, retrenchments
In an agreement signed with trade union Solidarity earlier today, Telkom undertook to suspend its current restructuring and retrenchment process. This includes halting the process wherein Telkom intended to use race as a criterion for layoffs.
In terms of the agreement, Telkom will suspend all planned selections, appointments and retrenchments. The parties also agreed to appoint a facilitator to commence facilitation of the restructuring process in terms of section 189 and section 189A of the Labour Relations Act on Monday, 21 July. New criteria for the restructuring process will be tabled and considered during a consultation process managed by the appointed facilitator.
Marius Croucamp, head of industry for the telecommunications sector at Solidarity, said the terms of the agreement are exactly what Solidarity wanted. "The agreement sends a signal to employers all over South Africa that Solidarity will not tolerate race-based layoffs. We will not let our members be traded in for black economic empowerment points. We also insist that restructuring processes take place in consultation with employees and be accompanied by a well-designed business strategy."
Croucamp expressed his thanks to Solidarity's supporters and members for the thousands of messages of support received since last week, in which they objected to the use of race in Telkom's planned layoffs.
The agreement comes after Solidarity initiated legal proceedings against the telecoms company last week. Solidarity rejected Telkom's plan under which some of its white, coloured and Indian workers could be laid off in order to improve its black economic empowerment score. Solidarity also objected to the deficient consultation process and inadequate clarification of the company's turnaround strategy.
The agreement will be made an order of the court next week.
Statement issued by Marius Croucamp, Spokesperson: Solidarity, July 17 2014
UPDATE:
Telkom misrepresents agreement with Solidarity
In an email to employees, Telkom yesterday misrepresented its agreement on restructuring reached with trade union Solidarity. Contrary to what Telkom says in the letter, the agreement does suspend the current restructuring plan.
Starting Monday, a facilitator will facilitate a restarted restructuring process in terms of sections 189 and 189A of the Labour Relations Act. Telkom has agreed to halt all further selections, appointments and layoffs, pending this new process. The agreement between Solidarity and Telkom will be made an order of court next week.
According to Marius Croucamp, Solidarity's head of industry for the telecommunications sector, the agreement amounts to much more than what Telkom's letter calls a "process to get further input". "It is disingenuous of Telkom to downplay the significance of the agreement. Serious shortcomings of the previous restructuring plan included not only the deficient consultation process in the run-up to it, but also many of its suggestions. Among these suggestions were stipulations under which some of Telkom's white, coloured and Indian workers could be laid off in order to reflect the national racial demographics and improve its black economic empowerment score."
Solidarity's attorneys have sent correspondence to Telkom insisting that its employees be properly informed of the full nature of the agreement. Copies of the draft court order and Telkom's letter are attached.
Statement issued by Marius Croucamp, Spokesperson: Solidarity, July 18 2014
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