Telkom 'won't have it easy'

BTTB

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http://www.finance24.co.za/Finance/Companies/0,,1518-24_1561568,00.html

Telkom 'won't have it easy'
22/07/2004 12:44 - (SA)

Thabang Mokopanele
Johannesburg - In their attempt to stop planned retrenchments at Telkom, the Alliance of Telkom Unions (ATU) on Thursday called for of a commission of inquiry to investigate the motive for further lay-offs at the company.

The three trade unions recognised by Telkom - Solidarity, the Communication Workers Union (CWU) and the South African Communications Union (Sacu) - are once again up in arms after the company reportedly informed them on Wednesday that it would retrench 4 181 workers instead of the initial 1 381 in the next three years.

"The company's profits and retrenchments for the past few years, its financial statements, budget and rationale for the planned retrenchments will be investigated.

"The foundation of their argument that personnel costs have to be brought down by 17% according to international standards will be subject to critical scrutiny," the ATU said in a statement.

"We believe in free market, in which economic role players are in balance, to be in the public interest. Surely the public interest cannot be served if worker's jobs have to subsidise shareholders, or if communities are disadvantaged in the pursuit of enormous profits," the ATU said.

It claimed that its concern about Telkom staff retrenchments was not simply a trade union's concern that its members might be dismissed, but a concern about an assault on the free market.

According to the ATU, members of the commission would include an expert in labour law, a business analyst and a representative from the trade union.

Constructive suggestions

The union added that there would be possible legal proceedings to prevent the retrenchments.

Amendments to the Labour Relations Act 189(a) now enable trade unions to test in court the reasonableness of the economic motive that companies use in justification of dismissals. Reasonableness is measured by community norms.

Solidarity argued that the loss of 4 181 jobs at a company that posted a R4.5bn profit in a country with an unemployment rate of 40% is most unlikely to be seen as socially justifiable.

During consultation with the employer, ATU said it would attempt to offer constructive suggestions on alternative lines of action that may prevent lay-offs.

"We would regard a win-win solution as the first prize, but will not hesitate to expose Telkom's flimsy rationale for staff retrenchments."

ATU said it wanted to join in partnership with the general public and mobilise public support in the fight against lay-offs.

It further stated that it would mobilise Telkom employees and enlist the support of all workers against the proposed retrenchments.

ATU added that Telkom workers would then embark on protest action that will last until the company reconsiders its plans, or until an agreement is reached between Telkom and the trade unions.

Edited by Mahap Msiza

<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">
 
"...personnel costs have to be brought down by 17% according to international standards..."

This argument would only be valid if competing on an open market. Telkoms Prices need to come down by 500% in order to justify "International Standards".

Telkom prefers to work on "Dual Standards"

For the first time in my life I am 100% behind the Unions on this issue.
Cheers
Chris
 
Good point Caroper.

Telkom mustn’t come along with "International Standards" scenarios. The members of MyADSL have been lobbying Telkom about applying pricing relative to "International Standards", but Telkom chooses to use its excuses whenever it pleases. Telkom is purely a South African Monopoly and nothing else. They wouldn't last for 2 minutes on the International Open Market. So making comparisons is ridiculous. Personally, Telkom deserves the attention about its retrenchment schedules. In a country like South Africa, every job is precious, even if it's a job with Telkom. And making excuses about Shareholder Value or Non-Charity Organisations is also ridiculous. The major shareholder being the state should practice what it preaches. Job Creation and Sustainable Employment/Development! Even if it means that it's shares might fall a few rands, so be it.


<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">
 
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