Telkom hit with ultimatum

By Candice Jones for Telkom
Johannesburg, 11 Oct 2007

Trade union Solidarity will present its case to the Commission for Conciliation, Mediation and Arbitration (CCMA) at the end of October, if its wage dispute with Telkom is not resolved by then.

Solidarity says Telkom`s interpretation of an earlier wage agreement "deprives workers of part of their remuneration".

According to Solidarity spokesperson Jaco Kleynhans, Solidarity has taken all possible steps to resolve the matter. "If Telkom is not prepared to seek a speedy resolution to an issue that closely affects it employees, Solidarity is left with no choice but to refer the matter to the CCMA."

The two-year agreement was signed in April 2006, following negotiations and strike action by the union. It guaranteed an average salary increase of 6.5% for 2007 to staff members represented by the Communication Workers Union and Solidarity.

Terms and conditions

"Telkom has reinterpreted the agreement we made. We do not concur with the way the company has now implemented it, because it effectively changes the percentage increase our members receive," says Kleynhans.

"The initial agreement expected Telkom to aggregate the total cost to company across a particular job level, apply the increase percentage and re-divide the total cost to the employees in that job level."

He says Telkom has taken the total cost to company across the board, applied the increase to that and redistributed the average to all employees irrespective of job level.

"The company`s interpretation of the agreement affects the amount by which the employees` total package was to have been increased from 1 April this year. Essentially, people with higher salaries will receive smaller increases - under the agreed percentage - and employees with lower salaries will receive drastic increases."

Agree to disagree

On several occasions during the two-month-long discussions, Telkom`s representatives have concurred with the union`s interpretation of the agreement, he claims. "We are confident of success at the CCMA, particularly in view of the fact that Telkom has admitted in the past that the union`s interpretation is true and valid."

Kleynhans says approaching the CCMA is the union`s last resort. "We are sure the CCMA will interpret the agreement in the same way we do. We just want Telkom to know we are serious about a resolution."

In August, the union instructed its legal team and economist Ulrich Joubert to investigate the matter.

"I can`t give you exact figures, because we presented those to Telkom. However, the total sum of money our members have lost amounts to several million rand," Kleynhans notes.

He says Solidarity is willing to engage in discussions with Telkom. "We understand that a change in the wage structure will cost the company millions, but we would like to a find a way to implement the agreement that makes everyone happy."

Telkom was unable to comment by the time of publication.