Telkom wage talks deadlocked

24 Jun 2011 18:49 - Staff Reporter

Wage negotiations between Telkom and Solidarity have reached a deadlock. It is demanding a 10% wage increase while Telkom is offering 4.5%.

Wage negotiations between South African fixed-line operator Telkom and labour union Solidarity reached a deadlock, Solidarity said on Friday.

Telkom, which is fighting to rein in costs, offered a two-year freeze on job cuts if employees agreed to a 4.5% wage increase, the union said in a statement.

The union said it was demanding wage increases of 10%.

Solidarity spokesperson Marius Croucamp told Reuters the union planned to return to the table with Telkom within the next seven to 10 days.

If those talks fail, the union would turn to South Africa’s labour mediation commission, he said.

Meshack Dlamini, a Telkom executive for employee relations, said in a statement the company had offered a two-year package that included 4.5% across-the-board increase and a one-time, 0.5% bonus to employees who exceed individual targets.

The package also offered a promise of job security, Dlamini said.

About 2 000 Telkom employees have taken voluntary severance packages announced earlier this year.—Reuters

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