Telecommunications operator Telkom (TKG) signed a new three-year substantive wage agreement with the Communications Workers’ Union (CWU) on Friday.
In terms of the agreement, all bargaining unit workers will get a 9% salary increase this year backdated to 1 April 2003, 8% in 2004 and 7% in 2005.
Partially-privatised Telkom, which is listed on the JSE Securities Exchange SA as well as the New York Stock Exchange, said the deal ushers in a new labour relations dispensation, and strikes a balance between the business imperatives of Telkom as a listed company and the interests of its employees.
“The agreement paves the way for future constructive engagement between management and labour in tackling both workplace and business issues. Today’s agreement between Telkom and CWU closes the 2003 substantive wage negotiations chapter, which saw the Alliance of Telkom Unions (ATU) — which includes the South African Communications Union (SACU), the Solidarity Union (previously MWU) and the Post and Telecommunications Association (P & T) — signing the three-year wage settlement on 23 May 2003,” Telkom said in a statement.
“In terms of the agreement, all bargaining unit workers will get a 9% salary increase this year backdated to 1 April 2003, 8% in 2004 and 7% in 2005.
“The percentage increases are based on certain key drivers such as inflation, Telkom tariff increases and market-related conditions. These increases are in line with Telkom’s business imperatives.”
Telkom Employee Relations Executive George Nkadimeng praised the negotiating teams from both sides, saying their mutual approach in resolving labour issues augured well for future dialogue between Telkom and the unions.
“The path to this agreement may have been rocky, but the win-win outcome for both organised labour and management sets the scene for future dialogue involving the parties on labour issues,” Nkadimeng said. – I-Net Bridge