bekdik
Honorary Master
http://brainstorm.itweb.co.za/online/ReadStory.asp?StoryID=157876
Telkom and three musketeers part amicably?
By Sipho Memela
It has been more than a month since Telkom's three executives were suspiciously suspended but with Telkom's recent announcement that the two parties have parted on friendly terms, industry speculation still indicates that there is more to the situation than meets the eye.
An announcement by Telkom last month that it had parted amicably with three executives it had suspended pending an investigation has been received with doubt by the industry.
The ‘three musketeers', Pinky Moholi, chief of sales and marketing, Belinda Williams, investor relations' executive and Oupa Magashula, executive of human resources were suspended from the monopoly earlier this year, pending an investigation into apparent insubordination.
It was alleged that the appointment of new CEO Papi Molotsane and the management reshuffle, done soon after his appointment, brought much unhappiness and disgruntlement among C-level employees. According to insiders, the three questioned what they saw as irregularities in the appointments made by Molotsane during the reshuffle.
SETTLEMENT AGREEMENT
The announcement has sparked rumours that the three might have received the ‘golden handshake' as the recently listed company admitted that investigations, said to have been embarked on by Telkom, had in fact, not taken place.
“I suspect that they may have received a golden handshake that came with a constraint of trade agreement. It is expected that Telkom would not want its executives, who have extensive knowledge on the running of the monopoly, to fall into the hands of the second networks operator,” said one source that preferred to stay anonymous.
Labour expert, Deanne Howes, of Howes Incorporated Attorneys says that at executive level most employment contracts have some form of constraint of trade agreement, which comes into play in such circumstances.
“If there wasn't a clause in their employment contract then I would image something of the sort would have been included in the settlement conditions. Certainly most companies would insist on a confidentiality clause when it comes to the terms of a settlement reached between two parties,” she explains.
THE LAWS OF BUSINESS
Telkom is reported as saying that it is business as usual at the company's headquarters in Pretoria, with the highly hypothesised suspension not having affected staff morale.
Though industry speculation has been rife, the two parties remain tightlipped as to what actually happened during the period of the suspensions.
Howes clarifies labour law specification pertaining to suspensions: “The law protects employees from making ‘protected disclosures' in respect of irregularities, offences or unlawful actions committed by the employer or fellow employees. This could have been a calling card for the suspended three, if indeed they were suspended for questioning irregularities in processes followed during the reshuffle or any recruitment processes,” she explains.
“If an employee were to be fired, this would immediately mean that the company supports these acts of misconduct and would have to compensate the employee with 24 months worth of pay,” elaborates Howes.
“Also, an employee can't be suspended for an indefinite period. The period of suspension should, at all times, be reasonable, taking into account, amongst others, the nature of the investigation and the time it would take to finalise.”
Howes expands: “Consideration should be given to the employee and the unpleasant effects that the suspension has on his or her life. Some disciplinary codes govern the period that an employee may be placed on suspension.”
INDUSTRY SPECULATION
In another twist, the Communications Authority (Icasa) has also since received a lot of criticism for what is said to be allowing Telkom to strong-arm itself out of situations such as these. Many have said that the authority has allowed Telkom to run itself without following the regulations set by the authority for the industry.
Molotsane has, however, assured the industry that the fixed line operator has a more than adequate skills base and will find suitable replacements for the three.
Telkom is reported to have appointed interim executives Charlotte Mokoena, Wally Beelders and Ian Timmerman to hold the fort while it considers the three's replacements.
Telkom and three musketeers part amicably?
By Sipho Memela
It has been more than a month since Telkom's three executives were suspiciously suspended but with Telkom's recent announcement that the two parties have parted on friendly terms, industry speculation still indicates that there is more to the situation than meets the eye.
An announcement by Telkom last month that it had parted amicably with three executives it had suspended pending an investigation has been received with doubt by the industry.
The ‘three musketeers', Pinky Moholi, chief of sales and marketing, Belinda Williams, investor relations' executive and Oupa Magashula, executive of human resources were suspended from the monopoly earlier this year, pending an investigation into apparent insubordination.
It was alleged that the appointment of new CEO Papi Molotsane and the management reshuffle, done soon after his appointment, brought much unhappiness and disgruntlement among C-level employees. According to insiders, the three questioned what they saw as irregularities in the appointments made by Molotsane during the reshuffle.
SETTLEMENT AGREEMENT
The announcement has sparked rumours that the three might have received the ‘golden handshake' as the recently listed company admitted that investigations, said to have been embarked on by Telkom, had in fact, not taken place.
“I suspect that they may have received a golden handshake that came with a constraint of trade agreement. It is expected that Telkom would not want its executives, who have extensive knowledge on the running of the monopoly, to fall into the hands of the second networks operator,” said one source that preferred to stay anonymous.
Labour expert, Deanne Howes, of Howes Incorporated Attorneys says that at executive level most employment contracts have some form of constraint of trade agreement, which comes into play in such circumstances.
“If there wasn't a clause in their employment contract then I would image something of the sort would have been included in the settlement conditions. Certainly most companies would insist on a confidentiality clause when it comes to the terms of a settlement reached between two parties,” she explains.
THE LAWS OF BUSINESS
Telkom is reported as saying that it is business as usual at the company's headquarters in Pretoria, with the highly hypothesised suspension not having affected staff morale.
Though industry speculation has been rife, the two parties remain tightlipped as to what actually happened during the period of the suspensions.
Howes clarifies labour law specification pertaining to suspensions: “The law protects employees from making ‘protected disclosures' in respect of irregularities, offences or unlawful actions committed by the employer or fellow employees. This could have been a calling card for the suspended three, if indeed they were suspended for questioning irregularities in processes followed during the reshuffle or any recruitment processes,” she explains.
“If an employee were to be fired, this would immediately mean that the company supports these acts of misconduct and would have to compensate the employee with 24 months worth of pay,” elaborates Howes.
“Also, an employee can't be suspended for an indefinite period. The period of suspension should, at all times, be reasonable, taking into account, amongst others, the nature of the investigation and the time it would take to finalise.”
Howes expands: “Consideration should be given to the employee and the unpleasant effects that the suspension has on his or her life. Some disciplinary codes govern the period that an employee may be placed on suspension.”
INDUSTRY SPECULATION
In another twist, the Communications Authority (Icasa) has also since received a lot of criticism for what is said to be allowing Telkom to strong-arm itself out of situations such as these. Many have said that the authority has allowed Telkom to run itself without following the regulations set by the authority for the industry.
Molotsane has, however, assured the industry that the fixed line operator has a more than adequate skills base and will find suitable replacements for the three.
Telkom is reported to have appointed interim executives Charlotte Mokoena, Wally Beelders and Ian Timmerman to hold the fort while it considers the three's replacements.