South Africa: Telkom announces voluntary seperation, early retirement packages
Telkom SA has announced that management and bargaining unit staff will be afforded the opportunity of applying for voluntary severance (VSPs) and early retirement packages (VERPs) from 15 March 2013 until 31 August 2013.
This follows formal consultation with internal and external stakeholders, including the three recognised trade unions – Communication Workers Union (CWU), South African Communication Union (SACU) and Solidarity.
This was necessary as the majority of Telkom’s employees who form part of the Bargaining Unit are primarily represented by these Organised Labour outfits.
The move is aimed at enabling Telkom to achieve its business objectives, secure its sustainability and commercial viability by rebalancing its workforce in line with its strategic imperatives.
Thami Msubo, Telkom’s Chief of Human Resources, says: “the VSP/VERP offer is necessary as there is an urgent need for the company to address its human capital requirements which impacts substantially and directly on the company’s cost base. We endeavour to improve efficiencies and re-align skill levels with the changes in our business and network to deliver what our customers want. The VSP/VERP offer is the most efficient and non-invasive manner in which the company is able to begin effecting control on its headcount costs”.
Msubo emphasised that the decision to apply for a package is at the sole discretion of every employee. However, the employer also has the sole discretion to accept or decline the application based on the business requirements.
The criteria that will be used in the approval of applications for voluntary severance (VSPs) and early retirement packages (VERPs) will be business and critical skills requirements.
“After the VSP and VERP window period closes, and if the process has not achieved the desired results, the Company may embark on retrenchments. Future retrenchment processes and severance packages will be done in accordance with the Labour Relations Act,” concluded Msubo.