South Africa’s part state owned operator Telkom has finished consultations with its employees regarding proposed retrenchments, with the retrenchments to go ahead as planned, the operator said.
HumanIPO reported in May Telkom announced it had entered an eight week consultation period regarding a planned restructuring of the company, which was to include a 25 per cent cut to management staff over three years, with a view to cutting costs reportedly by ZAR1 billion (US$93.5 million) annually over the next five years.
In June, Telkom announced it had agreed to enter further consultations with its organised labour on the topic of the proposed retrenchments, and had turned to an independent external mediator to facilitate the talks.
Telkom on Friday said the retrenchment consultations have come to an end, and announced the outcome is that proposed retrenchments will proceed as planned as of this week.
“After extensive facilitated consultations and deliberations, management and labour have, in the spirit of cooperation, reconciliation and acting in the best interest of all parties, reached consensus that the current restructuring process will proceed,” Telkom said.
“The parties have agreed that the process of placing employees, and VSP/VERP’s for all management, will proceed next week.”
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