Telkom and CWU sign agreement
Telkom and the Communication Workers Union (CWU) today signed an agreement which Telkom says addressed the issue of annual general salary increases as well as address the issue of salary disparities that have resulted from historical issues.
“The membership of CWU had embarked on industrial action from 3-14 August 2009. In the final settlement, Telkom and CWU agreed to a 7.5% general salary increase and a two-year moratorium on forced retrenchments. The parties also agreed to an accelerated process to address salary disparities and that all future increases will be performance based,” Telkom said in a media statement.
“On average, this translates to an 11.22% increase for bargaining unit staff and all adjustments are effective from 1 August 2009.”
“With the support and approval of our Board, Telkom has systematically and proactively addressed the matter of salary disparities,” said Telkom Group CEO, Reuben September.
He added: “We are extremely glad to have reached a negotiated settlement with the representatives of organised labour as Telkom places a high premium on the welfare and satisfaction of all our employees. Despite difficult current economic realities, Telkom has agreed to a two-year moratorium on forced retrenchments, thereby providing certainty and stability both for Telkom and its employees. I am satisfied that, together with organised labour, we have utilised the process of substantive negotiations to collaboratively address critical issues in the shortest possible timeframe within the context of Group affordability.”
September emphasised that today’s agreement further demonstrated that he could count on the support of all Telkom’s employees as the Group implemented its new strategy under its new organisational structure.
“I have always maintained that Telkom’s personnel provides us with the most solid foundation for refocusing our strategic imperatives in order to maintain our leadership position in South Africa while expanding geographically to become a fully-fledged Pan-African operator,” concluded September.
On Sunday the CWU said that its “member’s determination broke the backbone of Telkom and forced the employer to make positive adjustments to the salary increment offer at the CCMA.”
Telkom and CWU agreement – discussion
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