/ 29 April 2009

Solidarity demands 16% wage increase from Telkom

Solidarity has asked telecommunications giant Telkom for a wage increase of 16% on basic salaries, the union said in a statement on Wednesday.

It had also demanded that a moratorium be placed on retrenchments at the company.

According to the union, in the previous round of negotiations Telkom made an offer of 7,5%
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”Solidarity, however, maintains that this, which is effectively an increase of approximately 6,5% for the majority of employees in the company, is not a workable offer,” union spokesperson Jaco Kleynhans said.

Solidarity had demanded that the company adjust its mandate for the second round of negotiations.

”Telkom’s offer currently stands between 6,5% and 7,5% for employees on various job levels and has been compiled to eventually implement a scale adjustment for the lowest remunerated employees.”

The company’s offer was also lower than the current inflation figure.

”Solidarity’s demand in this year’s negotiations with Telkom is mainly based on the current CPI [consumer price index] figure, medical and food inflation, and inflation on administered prices,”
Kleynhans said.

”Solidarity’s demands are aimed at ensuring that employees at Telkom be remunerated to such an extent that they keep up with rising living costs and to eventually ensure a real improvement in salaries.”

Solidarity — as well as other trade unions in Telkom — submitted their joint demand for an increase of 16% and a set of about 30 demands to the company earlier this month.

The demands included an increase in vehicle allowances for employees on higher job levels, an increase in housing and medical aid allowances, and implementation of long service bonuses and retention bonuses.

Telkom could not be reached for comment. — Sapa