South African part state-owned operator Telkom is to offer its employees voluntary severance packages as it looks to cut costs, warning that further retrenchments may be necessary if not enough take up the offer.
Employees are to be offered the opportunity to take voluntary severance (VSP) and early retirement (VERP) packages in a window period between 15 March and 31 August.
In a statement the company says it has consulted with the three trade unions it recognises – the Communication Workers Union, the South African Communication Union and Solidarity.
“The move is aimed at allowing Telkom to achieve its business objectives, secure its sustainability and commercial viability by rebalancing its workforce in line with its strategic imperatives,” the company said.
Telkom human resources chief Thami Msubo said: “There is an urgent need for the company to address its human capital requirements which impacts substantially and directly on the company’s cost base.”
He warned that should not enough members of staff take up the packages, further retrenchments by the company were a possibility.
“After the VSP and VERP window period closes, and if the process has not achieved the desired results, the Company may embark on retrenchments. Future retrenchment processes and severance packages will be done in accordance with the Labour Relations Act,” he Msubo.
He said the packages provide the “most efficient and non-invasive manner in which the company is able to begin effecting control on its headcount costs”, and added the decision to apply for a package was at the discretion of the employee, with the employer also having the sole discretion to accept or decline the application based on the business requirements.
