/ 11 March 2003

SA govt cautious about views on Telkom job losses

The South African Government on Wednesday expressed the need to treat any suggestion of loss of jobs at Telkom (TKG) — which listed on the Johannesburg and New York stock exchanges this week — with caution.

Cabinet representative Joel Netshitenzhe said after Wednesday’s cabinet meeting that cabinet had noted the successful listing of Telkom on the JSE and New York

stock exchanges.

“In particular, it expressed its appreciation of the enthusiasm shown by millions of South Africans in showing an interest and taking part in this initiative.

“At the same time as laying the ground for more affordable services in the medium-term, the listing should also help improve the culture of saving among the public.”

Asked about Cosatu’s concerns about the expected loss of 10 000 workers at Telkom, he said this issue did not arise at the cabinet meeting. “Cabinet’s position is that this matter should be approached within the context of the National Framework Agreement (forged by Nedlac) where there should be discussion with the trade union movement to determine what restructuring should entail.

“Our advice is if there was any such intention on the part of Telkom they would need to treat this matter with caution. It would not be the best thing to do …that the listing of Telkom should immediately …with the suggestion of any causality lead to the loss of thousands of jobs.” – I-Net Bridge