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Johannesburg - Retrenchments could hit phone company Telkom as it plans to shut down several stores and restructure other parts of its business.
The announcement comes after Telkom earlier on Monday denied claims by labour union Solidarity that job cuts at the telecoms company could affect up to 10 000 workers in its “field force”.
However, Telkom has subsequently announced it plans to implement "cost efficiencies" in its Direct Stores as well as its call centres, IT Legacy Systems and internal printing, supply chain and properties.
“Telkom has conducted detailed analyses of the viability of all the Telkom Direct Stores,” said the company in a statement.
“The research has shown that it is, unfortunately, no longer viable to continue running some of the company’s 95 stores. It is clear that significant cost efficiencies can be realised, by closing down these unviable stores.
“These affected employees have today been notified of the decision and, in terms of the Labour Relations Act, have been issued with Section 189 Notices. Telkom will explore every option to place the affected employees impacted by this process in other areas of the business. Should such attempts be unsuccessful, some of the affected employees may unfortunately be retrenched,” said Telkom.
Telkom added that it plans “to ensure that job losses would be avoided and only used as a very final course of action”.
The company also said that it has identified external companies to undertake call centre operations and the management of its IT legacy systems.
Outsourcing is also planned to take place with regard to the management of Telkom warehouses in the supply chain of the business. The company's internal printing activities are also planned to be outsourced.
“A Section 197 process has been initiated for staff impacted in these areas of the business. These affected employees will be transferred to their new employers in the coming months,” said Telkom.
“Telkom is committed to a fair, objective and transparent process. The process will be consultative. A meeting with organised labour took place this morning. The official consultation process will begin on Friday this week, with more consultations to follow over the coming weeks. Affected staff have also been informed,” said Telkom.
These announcements from Telkom come after CEO Sipho Maseko last year said the company plans to review its workforce to cut billions in costs.
The telecoms operator also partly explained why it is undergoing restructuring.
“Telkom’s restructuring process is an imperative for the survival of the business and to secure the long term and sustainable growth of the company. The intention is to build the right organisation for the future by improving the business performance and unlocking efficiencies,” the company said.
