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Cape Town - Unions at Telkom [JSE:TKG] have not ruled out downing tools if a pay dispute is not resolved, it was reported on Wednesday.
The Communication Workers’ Union (CWU), the South African Communications Union (Sacu) and Solidarity on Tuesday said they had referred a wage dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA).
Solidarity spokesperson Marius Croucamp said wage talks began in March and after five sessions of negotiations the parties reached a stalemate.
Telkom’s offer of 1.5% was rejected by the unions.
The CWU is demanding 11.5%, Sacu wants 9% and Solidarity is asking for 8.8%.
According to ITweb, Solidarity, CWU and Sacu have not ruled out strike action.
The three unions, represents about 18 000 of Telkom’s 20 000 employees.
Although a strike had not been mandated, Croucamp told the news agency that a strike is a possibility.
Sacu president Michael Hare is reported to have said that it is inevitable that there will be a strike.
CWU spokesperson Dennis Morobe was quoted as saying that a strike is looking increasingly likely, especially if a better offer is not made.
Another CWU representative told Business Day that Telkom's offer amounted to exploitation of workers.
"We are not willing to compromise and there is a possibility we might even strike," Matankana Mothapo told the news agency.
Croucamp also took issue with the company's bid to cut costs.
He told Business Report that the parastatal's sponsorships of The New Age breakfasts, hosted by the Gupta family’s newspaper business, were a bone of contention.
City Press reported that Telkom splurged R34m on New Age ads in the period from December 2011 to November 2012.
Telkom’s advertising comprised 32% of the newspaper’s advertising income in the 12-month period.
In March the company announced that it would offer voluntary severance and early retirement packages to thousands of its employees.
"The move is aimed at enabling Telkom to achieve its business objectives, ... secure its sustainability by balancing its workforce in line with its strategies," the company said in a statement at the time.
The company expects its headline earnings per share to fall by at least 20% when it reports full-year results in June.
The Communication Workers’ Union (CWU), the South African Communications Union (Sacu) and Solidarity on Tuesday said they had referred a wage dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA).
Solidarity spokesperson Marius Croucamp said wage talks began in March and after five sessions of negotiations the parties reached a stalemate.
Telkom’s offer of 1.5% was rejected by the unions.
The CWU is demanding 11.5%, Sacu wants 9% and Solidarity is asking for 8.8%.
According to ITweb, Solidarity, CWU and Sacu have not ruled out strike action.
The three unions, represents about 18 000 of Telkom’s 20 000 employees.
Although a strike had not been mandated, Croucamp told the news agency that a strike is a possibility.
Sacu president Michael Hare is reported to have said that it is inevitable that there will be a strike.
CWU spokesperson Dennis Morobe was quoted as saying that a strike is looking increasingly likely, especially if a better offer is not made.
Another CWU representative told Business Day that Telkom's offer amounted to exploitation of workers.
"We are not willing to compromise and there is a possibility we might even strike," Matankana Mothapo told the news agency.
Croucamp also took issue with the company's bid to cut costs.
He told Business Report that the parastatal's sponsorships of The New Age breakfasts, hosted by the Gupta family’s newspaper business, were a bone of contention.
City Press reported that Telkom splurged R34m on New Age ads in the period from December 2011 to November 2012.
Telkom’s advertising comprised 32% of the newspaper’s advertising income in the 12-month period.
In March the company announced that it would offer voluntary severance and early retirement packages to thousands of its employees.
"The move is aimed at enabling Telkom to achieve its business objectives, ... secure its sustainability by balancing its workforce in line with its strategies," the company said in a statement at the time.
The company expects its headline earnings per share to fall by at least 20% when it reports full-year results in June.
