Trade unions at Telkom plan to tackle ”shareholder fundamentalism” at the communications monopoly that plans to lay off thousands of workers after record profits.
The Alliance of Telkom Unions (ATU) said in a statement on Thursday that Telkom is guilty of shareholder fundamentalism, as shown by the company’s recent decision to lay off another 4 181 workers.
The company recently paid its management and directors R48-million in performance bonuses after a net profit of R4,5-billion for its 2003/04 financial year.
”Shareholder fundamentalism leads to a situation in which the environment, the community and even the state are made subordinate to the interests of shareholders,” the ATU said.
”Our concern about the Telkom staff retrenchments is not simply a trade union’s concern that its members may be dismissed, but a concern about an assault on the free market.
”[Telkom] is an irresponsible shareholder fundamentalist that regards the interests of its employees as subordinate to the interests of its shareholders, top management and board…”
The mooted retrenchments form part of Telkom’s strategy to reduce staff costs as a percentage of revenue to 17% from 22,6%.
The company has said its current wage bill of R6,7-billion is too high.
Telkom has retrenched 24 453 workers since 1997 and the latest cuts are meant to meet the 28 000-employee target the company has set itself.
But on Monday Telkom disputed the number to be retrenched, saying only 82 have to go.
The ATU’s plan has five steps:
- A ”commission of enquiry” — include an expert in labour law, a business analyst and a trade union representative — will investigate the motive for the layoffs. The company’s profits and retrenchments in recent years, its financial statements, budget and rationale for the planned retrenchments will be investigated.
”Their argument that personnel costs have to be brought down to 17% in conformance with international standards will be subject to critical scrutiny.”
Telkom spokesperson Oupa Magashula said on Monday staff costs account for 22% of revenue whereas in other ”middle” developing countries such as Brazil, Mexico, New Zealand, Portugal and the Czech Republic they are 17%.
- Amendments to the Labour Relations Act enable trade unions to test in court the reasonableness of the economic motive companies use in justifying dismissals. ”Reasonableness is measured by community norms. The loss of 4 181 jobs at a company that posted a R4,5-billion profit in a country with an unemployment rate of 42% is most unlikely to be seen as socially justifiable,” the ATU said.
- The ATU will try to offer constructive alternatives that may prevent layoffs.
- It will mobilise public support against the layoffs, including highlighting the company’s high tariffs and circulating a petition against the retrenchments.
- ATU members will embark on protest action until the company reconsidered its plans or until an agreement is reached.
— Sapa