Communications operator Telkom plans to implement mass retrenchments which could affect up to 3 000 employees, the Communication Workers Union (CWU) announced on Wednesday.

“The deterioration in the economic climate, increased operational, regulatory and competitive constraints, coupled with continuing rapid migration from fixed voice and data business have all had a major ongoing negative operational and financial impact on Telkom,” said the telecommunications provider in a statement.

CWU general secretary Aubrey Tshabalala said that employees are bitter about this development, particularly as they have not had increases for a number of years, reports TimesLIVE.

He added that the employer still needed to fulfil certain requirements in terms of the Labour Relations Act, such as informing the employees on the reason for the planned retrenchments and that Telkom had proposed to meet next Wednesday and Thursday for consultations. “We need to respond with a programme of action,” Tshabalala said.

According to BusinessTech, Telkom said it will consider “voluntary severance and early retirement packages” for affected employees.

Businesses in the country seem to be struggling to keep head above water, as news of another mass retrenchment in the retail industry broke earlier this week.

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Article written by

Anita Froneman