Cell C Violates Recapitalization Conditions with Retrenchments Notice – Union

"In the meantime, ICTU is readying it's vast majority membership to be ready for the battle of their livelihood."

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CELL C
CELL C

Information Communication Technology Union (ICTU) said on Friday it was surprised by Cell C’s sudden notification that it plans to retrench as much as 960 out of 2500 total staff complement.

This is more than one-third of the total workforce at the Bargaining Level, where the ICTU, which is the sole workers representative, has a vast majority of the membership.

ICTU said it is enraged by thus unlawful notification because CellC hasn’t officially notified the Union about its plans to retrench and why Cell C is violating the conditions set out on recapitalization application made out to the Competition Commission.

“One, if key conditions were that recapitalization support by the Competition Commission, will include guaranteeing job security of workers,” said ICTU.

“This retrenchment notification to workers follows retrenchments at senior management team were 30 executives decided to take severance packages and CellC successfully reduced its executive structure from 135 to almost 100. Those retrenchments were to ensure that there is sufficient financial liquidity to support the recently appointed CEO Douglas Craigie-Stevenson turn around strategy.”

CellC claims that the retrenchments are as a result of :

(1) Enhancing Operational Efficiencies

(2) Improve and support Network strategy

(3) Improve Cash liquidity to support the trunk around strategy.

(4) Support Recapitalization efforts

The ICTU said it is reliably informed that Cell C’s positive financial performance has been increasing steadily since before the lockdown period and has performed much better during the lockdown period.

ICTU has communicated it’s displeasure to CellC management and hopes to get an urgent meeting  to engage on this matter.

“In the meantime, ICTU is readying it’s vast majority membership to be ready for the battle of their livelihood.”

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