Telkom, Africa’s biggest fixed-line telephone group, is planning to retrench 554 workers as part of its exercise to cut costs in the business and make it more profitable in order to compete aggressively in the market. By Staff Writer
Trade union Solidarity announced in a statement on Friday that Telkom had issued a notice of retrenchment to trade union on Thursday.
“In the retrenchment notice Telkom states that around 300 jobs at its Corporate Office will be affected by the process. It is also intended to transfer 254 employees to another company in compliance with section 197 of the Labour Relations Act,” Solidarity Deputy General Secretary Marius Croucamp said in a statement.
“This is the tenth consecutive year that Telkom is downsizing jobs by means of either retrenchments or offering severance packages.”
As part of its measures to contain costs, Telkom last year initiated a wage freeze across the board, Voluntary severance packages (VSPs) and voluntary early retirement packages (VERPs).
A number of workers took the packages.