Telkom staff offered separation packages

Telkom recently announced that they would start to offer ‘voluntary severance packages’ and ‘voluntary early retirement packages’ to non-management staff.

Telkom’s voluntary separation packages (VSP) and voluntary early retirement packages (VERP) were made available to staff this week, with staff members older than 50 years qualifying for voluntary early retirement packages.

The voluntary separation packages will take effect on 1 April, a day after the expiry of an agreement concluded in 2009 between several trade unions and Telkom, in terms of which employees’ job security was guaranteed until 31 March 2011.

Telkom explained that the latest staff offering is purely a voluntary separation package, but it is understood that management has the right the refuse the application from an employee. Telkom will therefore not allow staff to go unless they can afford to lose the post that staff member occupies.

According to a source close to the negotiations, the primary reason for the voluntary packages, and management’s right to refusal, is that Telkom currently have staff in the wrong places, and those staff do not always have the right skill-sets required for the company’s future technology direction.

Telkom is not in a position to ‘backfill’ any positions where staff have left, and the company would therefore rather retrain staff and redeploy them to areas which are a better fit for Telkom’s future direction.

Telkom responds

Telkom confirmed that their Voluntary Separation Packages (VSP) and Voluntary Early Retirement (VER) packages to employees in the Bargaining Unit, and that Telkom has the right to decline packages in order to retain the services of employees which they deem to possess critical skills.

Telkom further added that the reasons for offering VSP and VER packages are three-fold:

1. Emanating from requests received from employees in the Bargaining Unit.
2. Telkom’s quest to be as consistent as possible with benefits accruing to employees on different levels in the company. Last year this facility was available to managerial staff. It is considered appropriate to make this facility available to employees in the Bargaining Unit.
3. Supports the EBITDA, maximise efficiencies and other business improvement initiatives.

Telkom added that this process will create an opportunity to revitalise Telkom and train for future skill needs that are customer driven, based on customer requirements.

“As Telkom defines its new business strategy, it is critical to re-balance its workforce accordingly,” Telkom said.

The company added that these packages will give it an opportunity to re-organise the division/job responsibilities, improve synergies and productivity, address the oversupply of specific skills, focus on areas of business that is declining and retrain staff and redeploy them to growing areas of the business.

“Operational requirements are a key driver of this process and applications should be approved against the possibility to streamline and optimize specific or related functions. At the same time it is critical to re-evaluate vacancies and only fill those that are essential for executing the business strategy,” Telkom concluded.

Telkom staff offered severance packages << Comments and views