Local mobile operator MTN store’s transformation plan has sparked some concerns among employees and the labour union. The mobile phone operator initiated the programme two years ago to sell a majority stake in some of its retail stores mostly to black female entrepreneurs.
However, some employees working in these stores say the ownership changes are affecting their original terms of employment. They want MTN to address the issue.
MTN says its transformation programme does not involve the retrenchment of staff. It says the stores involve employees in line with Section 197.
“We really wanted to change the ownership landscape of the MTN branded stores in South Africa. So, we looked and we wanted to drive the gender and BEE transformation by starting to sell about 100 of our own stores. This is really a BEE and gender transformation and should not lead to job losses, so that is why we are actually very detailed when we select who we sell our stores to because we want to ensure the continuity of the stores as well as the business. We actually give them operational support to make sure there are no job losses,” says MTN General Manager for Branded Retail Channel Maria Van Niekerk.
However, some MTN former employees say the mobile service provider is not being transparent in its dealings.
” I worked for MTN for over 10 years and our store was bought but the conditions and benefits of the new employer were not feasible so I opted to stay at home than work under the unfavourable conditions.”
According to the Labour Relations Act, Section 197 is the transfer of part or the whole business to another employer. It states that unless otherwise agreed in terms of section 197 sub-section 6, the new employer is automatically substituted in the place of the old employer in respect of all contracts of employment in existence immediately before the date of transfer.
The Communications Workers Union says it will meet with the NEC to discuss MTN issues amongst other things next week.
President of CWU Clyde Marvin says, ” There are a number of issues and factors that we are going to discuss with our NEC because they have serious implications to our members and as an organisation, we are going to respond once we come out of our NEC.”
MTN says its store transformation is not about reducing stores or cutting jobs. The Group says it has transferred 68 stores so far and sold off 102 stores.
MTN is confident its store transformation process will see significant growth in the coming two years.
