Johannesburg - While Telkom might become more competitive as a result of the introduction of increased technology, 5 000 of its employees could lose their jobs in the next two to three years.
Telkom's chief executive, Sizwe Nxasana, said on a roadshow in the US that the telecommunications company wanted to reduce its staff from 33 000 to 28 000 to cut costs.
"It's part of our plan to ensure that we increase efficiencies and productivity in business,'' Nxasana said.
In a statement, Telkom said the number of its fixed-staff complement was expected to decrease by 1 235 positions this financial year. Of these, 745 had opted for voluntary severance and early retirement packages.
"The [other] 490 employees have a choice of going into the agency for career opportunities or to opt for one of the enhanced voluntary packages," said Oupa Magashula, Telkom's human resources group manager.
"Those who choose the agency option will be transferred there for up to 12 months with full pay and benefits while awaiting to be redeployed or reskilled."
He said the company had reached agreements with the Alliance of Telkom Unions (ATU) and the Communications Workers' Union (CWU) on possible job cuts.
Theo Strydom, the spokesperson for the ATU, said:
"We have an understanding with the company that those retrenched should go into an agency with Telkom to minimise job losses."
"We also have an assurance from the company that once the process has been completed, there will be no further retrenchments. Should they renege on this, we will be forced to go to court.''
Mike Seroba, the CWU's deputy general secretary, said:
"We have had several useful engagements with Telkom, after which we established task teams to look at alternatives to retrenchments."
"Our first prize is obviously to avoid retrenchments ... Whether we will succeed is too early to tell.''
The company has placed a moratorium on the filling of all vacancies in a bid to accommodate employees in the agency.
The ATU represents about 40 percent of Telkom's staff and the CWU about 32 percent.
Telkom increased 35c to R64.90 on Friday.
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