Telkom's R19m pay out to Jacques Schindehütte excessive - Solidarity

Union notes that the average technician at the company earns about R20 000 before deductions

Payment scandal at Telkom: Solidarity condemns waste

This many technicians’ salaries could have been paid with squandered money 

28 July 2015

Trade union Solidarity today strongly condemned the scandal regarding the compensation paid to members of Telkom’s executive management during the previous financial year. Solidarity believes that Telkom could have paid the salaries of about 80 technicians for a year with the money paid to its suspended former chief financial officer, Jacques Schindehütte (see Tech Central report).

According to reports, Schindehütte received payment of nearly R19 million in the financial year ended March – that while he had been suspended since the end of 2013 due to “personal misconduct” and did not work since then. In addition, R12,2 million of this was for “fringe and other benefits”. Schindehütte resigned on 8 August 2014.

According to Marius Croucamp, head of Solidarity’s Communications Industry, the average technician employed by Telkom earns about R20 000 per month before deductions. Therefore, with the R19 million in unearned compensation paid to Schindehütte, Telkom could have paid the salaries of about 80 technicians for a year.

“Given the massive retrenchment process at Telkom, we are aggrieved that Telkom has squandered so much money that could have been used to keep experts in its employ. At meetings with Telkom we will once again warn the company to get its priorities right and to have its employees’ interests at heart,” Croucamp said.

Statement issued by Marius Croucamp, Head: Communication Industry, Solidarity, July 28 2015