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Solidarity warns of impact of retrenchments at ICT companies on employees More retrenchments may follow at Cell C The trade union Solidarity warned today that the ongoing restructuring and retrenchments in the information and communications technology industry put employees under immense pressure. This follows after Solidarity received confidential information that Cell C is planning to continue with further retrenchments in addition to those that have already been announced.  Marius Croucamp, Head of Industry in the Communications Sector at Solidarity, expressed his concern about the aggressive and continued retrenchments experienced by the industry over the past year. “There have been far more retrenchments this year than in previous years. Certain companies are retrenching people on a large scale while only a few companies, such as Vodacom, have not yet announced any large-scale retrenchments,” he said.  Croucamp further warned that the employees that remain in the industry are experiencing increased pressure at work as they have to take over the tasks of their colleagues that have been retrenched. “We are currently seeing a pattern in the industry whereby retrenchments lead to overburdened employees and reduced production, which in turn may lead to further retrenchments. We will therefore urge employers during consultations that the welfare of its workforce should be the industry’s first priority,” Croucamp said.  The trade union attributed the recent increased job losses in the industry to pressure on the South African economy which, among other things, gives rise to sharply increased input costs. In addition, the implementation of new technologies that the industry’s survival fundamentally depends upon, has become unaffordable. The trade union also pointed out that staff is not being adequately trained to master the new technologies in the industry.  Below is a summary of the number of retrenchments currently taking place in the industry. Croucamp predicts that this number may increase significantly. 
CompanyNumber of employees affected
TelkomApproximately 1000 employees have been affected by the process, of which 676 employees have already been placed in alternative positions and 302 have accepted voluntary severance packages. The company is in the process of placing a remaining 104 employees in alternative positions. 
MTN847 employees are affected, of which 200 have already accepted voluntary severance packages. Placements in alternative positions are still ongoing. There may be as many as 354 forced retrenchments. 
Cell CUp to now, 190 employees are affected by the process. However, there is a strong possibility that there may be even more retrenchments.

Issued by Solidarity