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.<\/p>\n
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%.<\/p>\n
The partnership is demanding an increase of 14% backdated to September 2007 when the re-opening of the wage negotiations was agreed upon.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
"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.<\/p>\n
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.<\/p>\n
"The sub-standard offer proves that Telkom disregards its workers – something that is not expected from a responsible company such as Telkom," he said.<\/p>\n