Telecoms31.07.2008

Telkom increases pay offer

While approximately 38% of Telkom’s bargaining unit staff will receive their guaranteed salary increases of 10.5%, effective from 1 April 2008, members of the Communication Workers Union (CWU) and South African Communications Union (SACU) will officially embark on industrial action tomorrow. 

According to the section 64 notice received by Telkom, jointly from CWU and SACU, the industrial action that commences tomorrow at 07:30 will, continue until 06:00 on Tuesday 5 August 2008.

The protected industrial action emanates from CWU and SACU’s non-acceptance of Telkom’s final offer of 10.5%.

However, on 17 July 2008 Solidarity accepted, on behalf of its members, Telkom’s revised offer of 10.5% average wage increase that was presented to all unions recognised in the bargaining unit by the Company. Solidarity and non-unionised employees represent 38% of Telkom’s bargaining unit workforce.

The substantive agreement, signed between Telkom and organised labour in 2006 covers the substantive negotiation period from 1 April 2006 to 31 March 2009. 

As per this agreement an increase of 6.25% has already been implemented for all employees in the bargaining unit since 1 April 2008. This agreement also made provision for the re-opening of substantive negotiations which was triggered, inter-alia, by an increase in the CPIX. 

Says Meshack Dlamini, Telkom’s Executive for Employee Relations: “This is not a wage dispute. The re-opening of negotiations, as reflected in the dispute logged by organised labour at the CCMA, relates only to percentage salary increases, wherein performance increases, gainsharing, medical aid contributions and call-out allowances are included. It is not a total re-opening of substantive negotiations.”

“Regrettably, our last meeting with CWU and SACU did not yield positive results and the parties now stand split over a difference of 1% in addressing the increased top up which resulted from the upward movement in the CPIX,” said Dlamini.

He continued, “the Company is fully aware of the current economic climate and the plight of its employees, which is why the additional 4.25% increase was offered above the already implemented 6.25%”.

Dlamini stated that in the interests of all the Company’s employees, he hoped that CWU and SACU would sign the offer tabled as it is in keeping with the tough economic environment and inflation. “The Company‘s sensitivity to these matters are further evident in its 2008 tariff adjustment filing that stipulates an overall increase of only 2.4%,” he said.

“In adherence to its stated principle of customer centricity, Telkom will, for the period of the industrial action, have extensive contingency measures in place to ensure that the impact on service delivery is kept to a minimum,” concluded Dlamini.

Telkom pay discussion

 

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