Concern over Telkom's severance packages - Solidarity

The trade union Solidarity today expressed concern over the telecommunication giant Telkom's announcement that it intends offering severance packages to staff. Telkom presented proposals on the planned packages to trade unions on Tuesday.

According to Marius Croucamp, Solidarity's spokesperson, Telkom has indicated that it will not negotiate with trade unions about the content of the proposed packages. The 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 was planning to offer voluntary severance packages last year. However, when Jeffrey Hedberg was appointed as acting executive head, he put a stop to the plan, because it would not make ‘business sense'. "Now that Hedberg has not renewed his contract, the plan is being tabled again, although it still does not make sense to get rid of skilled employees to the detriment of service delivery," says Croucamp. "Telkom has to put its cards on the table over the proposed packages and state the real reasons behind the move," he warned.

"The criterion should be to retain critical skills. If Telkom persists in using race and gender as criteria for awarding voluntary severance packages, Solidarity will take legal steps, since these criteria constitute blatant discrimination," Croucamp warned. Telkom has also indicated that it would not give reasons for accepting applications for packages. "The process is therefore not transparent and discrimination on the basis of race and gender is a real possibility." According to Croucamp, Telkom should rather focus on retaining and developing critical skills within the organisation, to improve service delivery.

Solidarity pointed out that the proposed staff reductions would cause Telkom to lose extremely skilled employees with irreplaceable and critical expertise, which could hold a serious threat for the company's service delivery capacity and profitability.

The voluntary packages will be offered from 21 February to 18 March 2011. Staff who terminate their services on 31 March will qualify for six months' salary, while those who leave on 30 April, will only qualify for four months' salary. Other criteria that will be taken into account for applications entail implementing FIFO (first in, first out), excess skills in certain departments, restructuring and age.

Statement issued by Marius Croucamp, Spokesperson: Solidarity, February 10 2011

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