Delaying the inevitable

After the job massacre in the telecoms sector in 2014, there are, no doubt, many people who would have hoped for a reprieve this year - but it was not to be.

Labour issues seem to be dominating the headlines again, and thousands of people employed by the country's major telcos are once again living with uncertainty surrounding the future of their livelihoods.

Unfortunately, there seems to be little hope on the horizon, as market analysts are predicting retrenchments will continue, at least for the foreseeable future.

To put things into context, it is estimated about 2 800 telecoms workers were affected by labour-related issues in 2014. While not all of them may have lost their jobs, some have had to reapply for positions under new company structures, and yet others have had to take on different responsibilities as their job specifications were altered.

The bulk of those affected have been Telkom employees, as the company tried to trim the large amounts of fat it has been carrying around for so long. Sadly, it's not done yet, and its labour woes have taken centre stage, alongside the unsavoury business of CEO Sipho Maseko's unfortunate fake number plate saga. But I digress.

So far this year, about 570 employees in MTN SA's business unit had to re-apply for their jobs, when the country's second-biggest mobile operator said it needed to match the best skills with available positions. This is all part of the company's process of reorganisation and transformation of its local enterprise business unit, as it seeks to boost its competitive advantage in that space.

As far as I recall, this process is still ongoing, but has been overshadowed by a rather seemingly pointless and drawn-out strike, led by the Communication Workers Union (CWU). While the strike has had minimal impact on the company's operations, and MTN claims the majority of its workforce returned to work some weeks ago already, the situation has become a classic Mexican standoff.

Not that it hasn't been a messy affair along the way. MTN periodically complained of incidents of violence, and the CWU accused the company of being unfairly stubborn and unsympathetic to the plight of its workers.

Amid the turmoil of the protracted industrial action, MTN managed to lose its CEO, Ahmad Farroukh, whose departure - initially linked partly to the strike - was shrouded in some mystery, until it was announced he is going to head up Saudi Arabia's Etihad Etisalat (Mobily).

While this development served to take the focus off MTN's labour woes for a little while, the CWU wasted no time getting in on the act and swiftly condemned the departing Farroukh as arrogant and accused him of having no understanding of local labour laws. Perhaps the union will have better luck with Farroukh's successor, Mteto Nyati.

However, it is important to remember this strike - as comical and ineffectual as it may seem for the most part - has not been without its casualties. A few weeks ago, about 300 contract workers from MTN's retail and distribution divisions were dismissed by their respective employment agents for illegally joining the CWU strike.

While the union argues the contract staff were entitled to join the strike, as they are union members, pundits have slammed the CWU for committing a serious faux pas and misinterpreting the strike certificate issued by the Commission for Conciliation, Mediation and Arbitration, which only covers direct employees of MTN.

I can't help thinking there is a lesson about work ethic in there somewhere.

Unsurprisingly, the CWU is adamant it was acting within the law and says it will fight for the reinstatement of these workers. However, its chances of success are slim, and 300-plus youngsters - many are understood to have been new entrants into the job market - have been sacrificed for someone else's cause. While this is rather sad, I can't help thinking there is a lesson about work ethic in there somewhere.

Aside from the strike, talk is that MTN is mulling a reduction to its workforce and, ironically, it is believed the industrial action has demonstrated to the company it can function quite well with reduced staff numbers. Again, an own goal for the union.

Of course, the big mover on the retrenchment scene this year is Telkom, once again. After major layoffs last year, the company announced it would axe thousands of employees this year.

However, court action by trade union Solidarity ensured Telkom has had to abandon a process of forced retrenchments for over 4 000 staff, and has now taken to tempting workers into unemployment with once-off "lucrative" voluntary packages. This tactic has also been frowned on by the union and more legal wrangling is expected on this front.

Telkom has, in the meantime, stated its determination to continue with its transformation programme and it is widely accepted that jobs will be shed - one way or another. At the same time, analysts say telcos will continue trimming fat as much as they can, and sadly, Telkom is carrying around a lot of excess weight.

Granted, Solidarity's measured and tactical approach has no doubt been more effective than that of the CWU, and one should laud the organisation for saving 4 000 jobs - for now. However, I can't help but feel the unions are on the back foot this time and are perhaps just delaying the inevitable consequences of a mature market and a depressed economy.