Wage rage at Telkom

By Candice Jones for Telkom
Johannesburg, 23 Aug 2007

Trade union Solidarity has declared a wage dispute against Telkom. It says the company's interpretation of an earlier wage agreement "deprives workers of part of their remuneration".

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.

"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 Solidarity spokesperson Jaco Kleynhans.

Kleynhans explains 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."

Medical deductions

Solidarity is also disputing the implementation of Telkom's medical aid policy. "At the beginning of the year, the cost of medical aid increased and Telkom contributed the increased amount as we had agreed," says Kleynhans. "But when the increase to salary came up in April, the company first deducted the increased amount to the medical aid, which reduces the percentage of the increase even more."

Kleynhans says it is a technical issue, but one that has allowed the company to subvert the contents of the agreement made with the union.

"We have tried to discuss the matter with the company, however, we have had no success. We will be following all formal processes in dealing with the situation," says Kleynhans.

Solidarity says Telkom has been given until 28 August to rectify the matter before Solidarity takes further action. "If they have not responded by then, we will take the matter to the Commission for Conciliation, Mediation and Arbitration."

The union says it has instructed its legal team and economist Ulrich Joubert to investigate the matter.

Telkom spokesperson Lulu Letlape says the company is dealing with the matter internally and is confident of an expeditious and amicable resolution.