Telkom ordered to stop retrenchments

[Kevin Lancaster]

Telkom ordered to stop retrenchments

Telkom’s planned retrenchment of 105 workers was halted by the Johannesburg Labour Court on Wednesday

 

[MickeyD]

If anything it will buy those workers another month before they are retrenched.

 

[Jan]

Update

Telkom has said that media reports that it has been interdicted from proceeding with its plans to “realise cost efficiencies”, are inaccurate.

The court order, which MyBroadband has seen, states that Telkom has been interdicted from proceeding with the section 189, 189A, and 197 consultation process with any other union without including the Information Communication Technology Union (ICTU).

Telkom was further directed to comply with section 189(3) by furnishing documents and relevant information to any of the unions that were part of the court action (CWU, Solidarity, and SACU) which have not received the relevant documents.

Once all the unions have the documents, the process can resume.

 

[MickeyD]

Update

Telkom has said that media reports that it has been interdicted from proceeding with its plans to “realise cost efficiencies”, are inaccurate.

The court order, which MyBroadband has seen, states that Telkom has been interdicted from proceeding with the section 189, 189A, and 197 consultation process with any other union without including the Information Communication Technology Union (ICTU).

Telkom was further directed to comply with section 189(3) by furnishing documents and relevant information to any of the unions that were part of the court action (CWU, Solidarity, and SACU) which have not received the relevant documents.

Once all the unions have the documents, the process can resume.

Are ICTU recognised as a union by Telkom? (like the other 3?)

 

[Jan]

Are ICTU recognised as a union by Telkom? (like the other 3?)

Doesn't seem like it. Putting in a statement from Telkom now.

*Edit: statement from Telkom added to the bottom of the article.

 

[ToxicBunny]

So they wasted time and money and their members will still get the boot anyway it seems.

 

[maumau]

If they haven't got the money to pay staff it's no use forbidding Telkom to retrench.

 

[MickeyD]

If they haven't got the money to pay staff it's no use forbidding Telkom to retrench.

Where do you glean this from?

 

[maumau]

Where do you glean this from?

I thought they were retrenching because they were running out of money.

If i'm wrong why are they doing it?

 

[ToxicBunny]

I thought they were retrenching because they were running out of money.

If i'm wrong why are they doing it?

Restructuring... the reason most companies do rounds of retrenchment like this.

 

[maumau]

Oh, my bad, sorry.

Tks Toxic.

 

[mercurial]

Restructuring... the reason most companies do rounds of retrenchment like this.

AKA, we don't have money, so GTFO. maumau is not incorrect. This kinda **** happens all the time. It's akin to "water damage" excuses from SPs; just a generic excuse to do what they want.

 

[MickeyD]

I thought they were retrenching because they were running out of money.

If i'm wrong why are they doing it?

It has nothing to do with their current cashflow or even their current profitability.

Rather it has to do with how they want to do business in the future and ways in which to enhance shareholder value.

They've obviously paid some fancy consultants a good few tens of millions of rhonds, obtained Board approval and are now implementing their strategy for the future. And the fallout will be on the bottom end of their labour force...

It would appear that their future mode is to retain the core network and to "in-source" all other services, including their field force who install DSL lines, etc.

Telkom stressed that the restructuring process is an imperative for the survival of the business and to secure the long term and sustainable growth of the company.