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UUNET, former MD in talks

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 22 Jun 2005

Bheki Nkomo, UUNET SA`s former MD, says he respects the company`s decision to retrench him, but has indicated he is still in talks with the group about certain technicalities pertaining to the retrenchment process.

Nkomo, who held the position of MD for seven months, was removed from his post as part of UUNET SA`s restructuring drive that will align its management structure with that of its major shareholder, US-based MCI. At the time of his appointment, UUNET had been without an MD for about nine months.

Along with Nkomo, the Internet-based converged communications provider also retrenched Guy Clarke, director of African operations, and dissolved its locally-based African operations management team.

"MCI obviously felt it is not necessary to have the skills that we brought to the table. MCI feels that, in terms of its global plan, its businesses need further restructuring, and if that has to be at the cost of people like us, so be it. I respect that, I don`t have a problem with it," he says.

Responding to industry speculation, Nkomo denies he has taken the matter to the Commission for Conciliation, Mediation and Arbitration, but suggests that talks are taking place between him and the company about the process followed for the retrenchments.

Industry sources have raised eyebrows about the suddenness of Nkomo`s departure, after he was removed from his post last Thursday. However, he refuses to be drawn on whether UUNET gave him adequate notice.

"I don`t want to comment on that, but I can say that, while I gladly accept the company`s move, some housekeeping has to be done. We need to look at the framework around the retrenchments and ensure our interests are looked after. At this point, this is a consultation process. I`m confident that this issue will resolve itself.

No regrets

"I have no regrets. I understand that MCI has no MDs at any of its international operations, and one has to respect how an organisation conducts its restructuring."

He adds that, despite UUNET having seen a large turnaround under his leadership, MCI has decided to take a different direction.

Commenting on his plans for the future, Nkomo says he will keep his options open in the ICT field.

"At the moment I`m playing a bit of golf and doing things that I normally did not get a chance to do."

Meanwhile, a UUNET source says the company has appointed Angela Gahagan, customer services senior executive, to head up local operations.

Company spokesman Kerryn-Leigh Anderson says the restructuring process is in its early stages and she could not say how many other employees might be affected. However, she points out that Nkomo and Clarke are expected to be the only retrenchments from UUNET`s executive team.

"As we continue to better position the company, including improved integration and the automation of certain functions, we expect to add and reduce workforce positions as needed. If any reductions are to take place, it is UUNET/MCI`s policy to disclose the relevant information first to employees and to comply with all relevant legal and regulatory requirements," she said in a statement.

Related story:
UUNET retrenches CEO

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