[DATA TKG: Telkom] employees have been given just 14 days to make a life altering decision. In an aggressive bid to cut the ailing telco’s costs, management has offered all non-unionised full time staff voluntary severance and early retirement packages; Telkom’s CEO Sipho Maseko says the offer which is “significantly more generous than those required by the market” is on the table for two weeks and may never be made again.
“As our financial constraints become more severe our flexibility to offer generous severance packages going forward reduces and therefore it might be probable in the future that packages of this nature will never be offered again” adds Maseko
The package offerings come just after a Labour Court Judge ordered Telkom to halt its forced retrenchment programme and re-engage with organised labour at the CCMA. Telkom plans to cut 4 400 jobs as part of its restructuring plan which will also see an additional 3 000 redirected through outsourcing or business development.
“Companies like ourselves globally face structural, strategic and regulatory pressures which puts this very survival of Telkom at stake therefore managing our costs is both a reality for us locally as it is for international players and it’s something that we have to face if we are to remain competitive and in the game” said Maseko.
Telkom will seek consent from the unions to extend the offer to their members as well. The company says it cannot say what the packages will cost shareholders as it is yet to see the appetite for the offering.