Telkom, along with two unions representing the majority of its workers, have been unable to reach an agreement on salary increases for the 2023/2024 financial year. The Communications Workers Union and South African Communications Union, forming an alliance, informed their members that they were unable to come to terms with Telkom and Gyro Group after two dispute resolution meetings.
Initially, the alliance had requested a 15% wage increase but later reduced it to 9% during the last meeting held on August 3, 2023. Telkom cited financial challenges due to the current economic environment as the reason for not being able to afford any increases in fixed costs.
Telkom CEO Serame Taukobong recently stated that the company would not offer any increases or bonuses until it started performing well. This decision was made to establish a “performance culture” within the company and drive growth.
Despite Telkom’s offer of improvements on variable cost items and terms and conditions of employment, the alliance found them insufficient. As a result, they plan to refer the wage dispute to the Commission for Conciliation, Mediation, and Arbitration (CCMA).
Telkom expressed its appreciation for the constructive working relationship it has had with the alliance over the years and emphasized the importance of resolving the impasse for the long-term sustainability of the company. In the meantime, Telkom and Gyro will implement their final wage settlement offer, including the aforementioned improvements, which will take effect in September 2023 and be applied retrospectively from April 1, 2023.
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