Johannesburg - Trade union Solidarity has accepted Telkom's [JSE:TKG] offer of a 7% pay rise this year, the union said on Monday.
"The agreement is currently being finalised and will soon be signed by all parties," said spokesperson Marius Croucamp.
He said the final offer was an increase of 7% for 2011 and 6.55 for 2012, as part of a two-year agreement.
The original offer was a 4.5% rise.
"A strike in the industry could have been catastrophic,
since even the service delivery of ATMs is dependent on Telkom,"
Croucamp said.
Employees' profit share would be increased to 18% while issues such as job security and salary inequality had been
referred to a special forum.
"Telkom also agreed to address inequality in medical allowances."
The agreement was concluded on Friday after five months of negotiations, he said.