Telkom gets one week to resolve dispute
Solidarity has informed South African fixed-line operator Telkom (TKG) that if the wage dispute between the union and the company is not resolved by April 7, the union will lodge a formal dispute with the Commission for Conciliation, Mediation and Arbitration.
This follows after the biggest trade union partnership in Telkom, formed by Solidarity and Communication Workers Union (CWU), turned down Telkom's wage offer of an increase of between 7.5% and 7.7%.
The partnership is demanding an increase of 14% backdated to September 2007 when the re-opening of the wage negotiations was agreed upon.
Other demands regarding profit sharing, performance increases, medical fund contributions and standby allowance were also handed in. The dispute will be declared on all five aspects open for negotiations.
In 2006, unions – due to the low inflation rate at the time – agreed upon an increase of 6.25% with Telkom to be implemented on April 1 this year.
Telkom is now offering an additional increase of between 1.25% and 1.45% only, even though the inflation rate increased by more than that since then.
The wage agreement that was signed in 2006 stretches over a three-year period. According to the agreement the negotiations must be re-opened if there is an increase or decrease of at least 3% in the consumer price index (CPIX) or any other market change between April 1, 2006 and March 31, 2009.
"Solidarity is very disappointed in Telkom's offer to its workers. The offer is still far below the current consumer price inflation that now stands at 9.4%," said Solidarity spokesperson Jaco Kleynhans.
He explained that the offer does not come close to the increase in its members' living costs and doesn't offer any increase in their living standard.
"The sub-standard offer proves that Telkom disregards its workers – something that is not expected from a responsible company such as Telkom," he said.
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