26 February 2016

South Africa: Telkom Confirms Plan to Cut More Jobs

Telkom has confirmed that it is undergoing an employment process that affects hundreds of employees.

On Friday, trade union Solidarity said that Telkom has issued a retrenchment notice which is expected to affect around 300 jobs at the company's corporate office.

Solidarity, in its statement, also said that Telkom plans to transfer an extra 254 employees to another company in compliance with section 197 of the Labour Relations Act.

Telkom has subsequently confirmed these plans.

"Telkom yesterday informed unions of its intention to pursue a Section 189 process, within its corporate centre, which may impact approximately 300 people," Telkom managing executive of group communication and public relations, Jacqui O'Sullivan, told Fin24.

"In addition to this, Telkom plans to outsource in the region of 260 roles in its shared service environment through a parallel Section 197 (outsourcing) process," O'Sullivan said.

According to union Solidarity, this is the tenth year the company has conducted a retrenchment exercise.

Telkom indicated that the process forms part of a turnaround strategy.

In June last year, Telkom announced plans to cut 4 400 jobs through voluntary severance packages or voluntary early retirement packages while also outsourcing 3 400 employees.

Source: Fin24

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