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Telkom denies up to 10 000 could lose jobs

Johannesburg - Landline phone provider Telkom has said the Solidarity Union’s claims about job cuts at the company are "incorrect".

On Monday, the Solidarity Union said Telkom is planning “major restructuring”.

In particular, Solidarity said Telkom’s field force division would be affected. This division comprises of mainly technical staff within Telkom.

"The company's management informed the trade union that it is planning on restructuring its field force division," the union said.

"As many as 10 000 employees could possibly be affected by the process," the union added.

However, Telkom has denied the claim.

“Telkom's meeting with organised labour is still ongoing. The claims by Solidarity are incorrect,” said Jacqui O’ Sullivan, Telkom’s Managing Executive for Group Communication.

“The Telkom field force is not under discussion today. More details will be shared once the meeting and the necessary process, has been concluded,” O’ Sullivan said.

Last year, Telkom CEO Sipho Maseko said the company plans to review its workforce to cut billions in costs.

Further information

Speaking to Fin24, the Solidarity Union spokesperson Marius Croucamp said a portion of the 10 000 workers could be retrenched while other aspects are planned to be outsourced.

"Well if one goes back to what happened this morning I was informed by a Telkom executive that they're embarking on a restructuring which will include outsourcing, which will include retrenchment,” Croucamp told Fin24.

"Then, in a company consultation forum later in the morning where our structures are present, our shop stewards and our organisers, it was announced as well.

"And obviously what we are waiting for now is the formal written notification, so, they cannot deny that part,” Croucamp said.

Croucamp has also clarified the union’s statement on 10 000 workers being affected by possible Telkom job cuts.

"If one looks at the divisions that are affected which we include the technical division, it's our estimation that it's round about 10 000 people will be affected,” Croucamp said.

"Now that does not mean that 10 000 will be retrenched,” he added.

A meeting between Telkom and unions was still taking place on Monday afternoon, just before 14:00 South African time.

But Croucamp raised concerns about what decisions will be made.

"The backbone of the South African communications industry runs off Telkom, and Telkom must be very careful, we already have a major problem with power and Eskom, and we don't want to be a position in five years time where we have total collapse of our communication industry and IT infrastructure because of a wrong decision being taken now,” he said.

He also said Telkom’s relationship with unions is at an “all time low”.

"The company appears to have made a decision and they're supposed to consult with unions when they contemplate. They're already too late that they're talking to us. They should have talked to us earlier and that's a major concern,” Croucamp said.

Soon after 14:00 on Monday, Croucamp phoned Fin24 to say he had received a notice regarding Telkom's cost cutting measures which are expected to affect the likes of contact centres and direct shops. No information was provided on how many jobs could be affected, Croucamp said.

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