The squabble between MTN and its Branded Channel employees has escalated and job stoppages are being contemplated for next week.
The employees allege MTN has implemented phase one of its transformation strategy, which has seen eight shops being sold off without consultation.
With the sale, workers claim their salaries and benefits have been drastically reduced. In some instances, they allege up to two-thirds of their current earnings have been cut.
MTN denies this, saying it has received offers to purchase from several existing store owners but no sale agreements have been concluded.
However, documents seen by ITWeb show a list of “stores to be transacted to expandable dealers” which was sent to the employees.
The document lists MTN stores in Wonderboom Junction, Pinecrest, Vereeniging, The Square Farramere, Cavendish and Golden Acres as among those to be transacted.
Further, the documents show the benefits employees will lose include paternity leave, paid overtime, company medical aid contribution, provident fund, life and disability cover, funeral benefits and maternity leave.
To cap it, the documents show salaries will be reviewed from 1 April.
Currently, MTN Branded Channel employees receive a basic fixed package, 10% provident fund, 2.5% risk cover, R200 airtime and 60% medical aid employer contribution.
From next month, those affected will only receive a fixed basic salary plus commission, the documents show.
Strong denial
In spite of the document having been sent and some signed by the new dealers, MTN SA’s executive for corporate affairs, Jacqui O’Sullivan, denies employees will be affected.
She says: “MTN has been deliberate in ensuring the change of ownership of the affected stores would not result in job losses. To this end, our employees of the affected stores will be transferred with the business in a Section 197 process.
“This will ensure the affected employees remain employed by the new store owner on ‘no less favourable terms and conditions’ consistent with the labour regulations.”
According to O’Sullivan: “The transfer does not interrupt the employees’ continuity of employment, nor the employees’ contract of employment. Temporary staff of the affected stores will be made permanent prior to the transfer to the new owner.”
She says MTN is further ensuring transferred employees do not get impacted by the transfer during the first 12 months post the effective date. “This ensures employees are not negatively impacted financially during the first 12 months of the transfer.”
O’Sullivan adds that formal Section 197 engagements with only the affected stores, employees and union representatives commenced on 17 February.
However, an employee from the affected shops says there were no consultations and with the new structure, they will be earning R4 500 from a previous basic of R25 000 a month.
“There is likely to be a strike next week; we are waiting for the union. Wonderboom Junction Store was sold without telling the employees and the new owner has been calling the shop three to four times a day threatening them that it’s his shop. Our salaries have been reduced from R25 000 a month and now we will be taking home only R4 500, it’s over for us at MTN,” says the employee.
Another employee from a different MTN store region says: “MTN is exploiting its employees because those dealers who bought the stores don’t offer any benefits for employees. The stores have been sold without communication or staff knowledge.
“In the past, they would transfer a shop to a dealer and accommodate the staff in other stores. Why is the process different?”
It’s ‘madness’
The Communication Workers Union says no formal consultations have been entered into with MTN.
Secretary-general Aubrey Tshabalala tells ITWeb that MTN only informed shop stewards on Friday last week of the sale.
“This is basically madness. On Friday, they confirmed it’s a done deal; it means they have a buyer and already concluded the business model.”
He adds: “We are the sole representative union at MTN; we have not been consulted. Consultation means you send a letter to the union and we send specialised representatives. You can’t say you meet with shop stewards who are employees of the company and say you have met the union.”
Tshabalala says the union is pursuing multiple avenues, including approaching courts and “industrial action is one of the avenues”.
ITWeb reported last year that MTN employees had expressed fears the company’s move to sell off its stores (Branded Channel) will result in them losing their jobs.
The company denied retrenching staff, stating its objective with the project is not to close stores, but to rather increase, not only the company’s store footprint, but also its BBBEE ownership of MTN stores.
“It will be interesting to know who will buy these shops; we know there are four executives who are crafting this process for their own benefit," says Tshabalala.
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