Numsa says Telkom is unable to justify its retrenchment plans

Reading Time: 2 minutes

Metalworkers union Numsa says Telkom has been unable to justify why it plans to retrench 3 000 workers. Following a two-day consultative meeting facilitated by the CCMA, the union says it is not convinced that cutting down on the workforce will address stiff competition that Telkom management has cited.

This comes after Telkom, in which the government holds a stake of about 39%, has over R11 billion worth of debt and is struggling with declining performance in fixed voice and fixed data services.

Numsa Spokesperson Phakamile Hlubi-Majola says the Telkom management has also failed to substantiate the reasons the company is losing so much revenue.

She says Telkom is operating on both fixed line and mobile data and its competitors only focus on mobile data.

“Furthermore, the presentation failed to address how Telkom intended to attract new customers or increase revenue. They were unable to say exactly what steps had been taken to mitigate against this. We remain unconvinced that the cutting of so many jobs will improve Telkom’s core issues. A smaller workforce will not make it more competitive. If anything, it will mean it is unable to service the public and its customers, something which it is already struggling to do with the current workforce which it has,” says Hlubi-Majola.

Watch a related Telkom retrenchments video below: