justplain
Expert Member
Govt keen to talk to Telkom
13/08/2004 08:28 - (SA)
http://www.finance24.co.za/Finance/Companies/0,,1518-24_1572481,00.html
Mathabo le Roux
Johannesburg - The government has for the first time expressed concern over Telkom's planned retrenchments.
Roy Padayachee, deputy minister of communication, on Thursday voiced government's concern over the planned retrenchment of more than 4 000 Telkom workers over the next three years.
It is the first time that government has commented on the situation at the former state-owned company. Telkom announced its plan to retrench workers over a month ago despite huge operational profits of R4.59bn in the past financial year.
"Obviously we are concerned over their plans. We are keen to talk to them about this," Padayachee said.
When asked whether government would intervene if Telkom goes ahead with the lay-offs, he did not want to comment. Analysts believe that government would shy away from such a step because it would send the wrong message to potential investors in the country.
This year, government has strongly criticised companies in the mining sector for threatening to lay off employees because the strong rand was cutting into their profits. However, until now, it has not commented on the same threats at the communication giant and other former state-owned institutions.
After a protest march to the Reserve Bank on Wednesday to protest the effect on the rand on the economy, Willie Madisha, president of the Congress of South African Trade Unions (Cosatu), said the large number of retrenchments at former state-owned institutions confirmed the concerns over privatisation that the union has harboured for years.
"At most of the institutions that were privatised, we have this situation. Just look at Equity Aviation. Look at Telkom and Iscor. They are cutting down job opportunities. It proves the contention of the unions that privatisation is wrong," Madisha said.
Meanwhile, Telkom on Thursday said it and organised labour have established a task team ahead of further consultation meetings facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) to look into planned job cuts.
Three trade unions recognised by Telkom earlier accused the company of refusing a request by them to take part in a separate commission of inquiry into the reasons for its planned staff lay-offs.
Telkom media relations specialist Ravin Maharaj told I-Net Bridge that organised labour has the opportunity to interrogate Telkom's business rationale behind a programme of possible headcount reductions.
Both parties met at the CCMA on August 6 at the request of organised labour that wanted an independent facilitator for talks with Telkom, he said.
The parties will meet again on August 24, September 4 and September 13 in the consultation process. [
][]
"There is nothing more frightful than ignorance in action."
13/08/2004 08:28 - (SA)
http://www.finance24.co.za/Finance/Companies/0,,1518-24_1572481,00.html
Mathabo le Roux
Johannesburg - The government has for the first time expressed concern over Telkom's planned retrenchments.
Roy Padayachee, deputy minister of communication, on Thursday voiced government's concern over the planned retrenchment of more than 4 000 Telkom workers over the next three years.
It is the first time that government has commented on the situation at the former state-owned company. Telkom announced its plan to retrench workers over a month ago despite huge operational profits of R4.59bn in the past financial year.
"Obviously we are concerned over their plans. We are keen to talk to them about this," Padayachee said.
When asked whether government would intervene if Telkom goes ahead with the lay-offs, he did not want to comment. Analysts believe that government would shy away from such a step because it would send the wrong message to potential investors in the country.
This year, government has strongly criticised companies in the mining sector for threatening to lay off employees because the strong rand was cutting into their profits. However, until now, it has not commented on the same threats at the communication giant and other former state-owned institutions.
After a protest march to the Reserve Bank on Wednesday to protest the effect on the rand on the economy, Willie Madisha, president of the Congress of South African Trade Unions (Cosatu), said the large number of retrenchments at former state-owned institutions confirmed the concerns over privatisation that the union has harboured for years.
"At most of the institutions that were privatised, we have this situation. Just look at Equity Aviation. Look at Telkom and Iscor. They are cutting down job opportunities. It proves the contention of the unions that privatisation is wrong," Madisha said.
Meanwhile, Telkom on Thursday said it and organised labour have established a task team ahead of further consultation meetings facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) to look into planned job cuts.
Three trade unions recognised by Telkom earlier accused the company of refusing a request by them to take part in a separate commission of inquiry into the reasons for its planned staff lay-offs.
Telkom media relations specialist Ravin Maharaj told I-Net Bridge that organised labour has the opportunity to interrogate Telkom's business rationale behind a programme of possible headcount reductions.
Both parties met at the CCMA on August 6 at the request of organised labour that wanted an independent facilitator for talks with Telkom, he said.
The parties will meet again on August 24, September 4 and September 13 in the consultation process. [
][]"There is nothing more frightful than ignorance in action."