Valid for three years, the agreement concludes salary disparities and staff unit issues which have been contested from March 2013.
HumanIPO reported yesterday on union Solidarity’s negotiation status with Telkom and its members which still pointed to disagreement.
According to Telkom, the South African Communications Union (SACU) has also agreed to sign the document, though time is needed for balloting which is currently in progress.
Sipho Maseko, chief executive officer (CEO) at Telkom, said: “Despite difficult current economic realities, Telkom, together with organised labour, have utilised the process of substantive negotiations to collaboratively address critical issues within the context of the group’s sustainability.”
He emphasised the importance of teamwork in overcoming the obstacles faced with the new adjustments in reaching the company’s goals.
Financial health and long-term sustainability is assured through the agreement by setting the record straight regarding labour costs until 2016.
Other advantages include a focus on productivity challenges and cost management.
Productivity initiatives and interventions are yet to be determined.
Human capital costs will increase with 6.8 per cent, which will also speed up the address of salary disparities.
Valid from April 1, 2013 to March 31, 2016, the agreement corresponds with the Employment Equity Act, following the payment principle according to economic value.
Salary increases will be backdated to benefit the relevant employees, including a six per cent rise and pension payments.