CWU+in+dispute+with+Telkom,+Mfanafuthi+Sithebe




 * 7 March 2006**

Press release
=CWU declares dispute – Telkom substantive negotiations=

The Communication Workers Union has formally declared a dispute with Telkom South Africa Limited. This comes as a result of the failed substantive negotiations.

The dispute has been formally referred to the Commission for Conciliation Mediation and Arbitration.

Find the attached detailed report on substantive negotiations

Issued by: Communication Workers Union Head of Communications: Mfanafuthi Sithebe Tel: +27 11 838 8188 Mobile: 0832089643 Mail: **mfanafuthis@cwu.org.za**

The Engagement
The negotiations kicked off in earnest on 19 January 2006, when TELKOM made its opening offer. The date also coincided with the announcement of the historic Coalition between CWU and Solidarity, named Coalition of Telkom Unions (CTU). CWU made its demand to the company the next day by means of a presentation. The presentation was a culmination of long hours of behind the scenes work by our various sub- teams, i.e. Research, Financial, Spokespersons, Strategy and tactics. We also had a combined session with Solidarity to ensure that their mandates are safely incorporated into CWU’s demands. ATU did not form part of the negotiations after the first meeting.

After each round of negotiations written reports were distributed using the E-mail network of the company and the recently installed ADSL lines of CWU. These reports were followed by intense report back meetings that were held throughout all Provinces. Members were informed of the latest developments by negotiators, POB’s, LOB’s and shopstewards.

A revised mandate was given to negotiators by CWU members prior to each and every round of negotiations. Members knew exactly what they want and made it clear to the team that TELKOM must address the core issues, which are compression of grades, gain sharing, 20th percentile and salary increase, before any agreement could be considered. Unfortunately the company’s negotiators felt that they will not address our core concerns, but rather presented complex proposals linked deliberately to conditions such as performance and a three year agreement.

In the early stages of the process (3rd meeting) TELKOM made its final offer. This offer was communicated to members who rejected it outright. The reasons put forward for the rejection were the company’s refusal to make genuine moves to address, what can now be referred to as the more important issues. The negotiating team went into the fourth meeting with confidence that by withdrawing some demands and moving on the more important demands could create the correct space for the company to reconsider its final offer. Management, who are proponents of huge disparities, did not want to compromise. As long as their share (48, 9%) of the salary bill of R 3, 615 billion for six months is not touched, they are happy to give scrums to workers. The bargaining unit which constitutes more than 23000 workers is responsible for R 1,844 billion, while management (2304) is responsible for the remaining R 1,771 billion for the six months April 2005 to September 2005. The meeting ended in a deadlock and CWU declared a dispute.

The Dispute
The dispute was officially referred to the CCMA for conciliation on 3 March 2006. The issues in dispute are:

TELKOM created this monster unilaterally in 2003 which resulted in huge anomalies within a grade. In the OP1grade (operational) the difference between the highest and lowest paid worker is R 3177.00 per month and on M6 (supervisory) R 10 570.00 per month. The revised demand of CWU is that the salaries of all workers below the 70th percentile be increased to that percentile, thus resulting in the reduction of the salary notches from 100 to 30.
 * 1. Compression of grades**

TELKOM’s final offer is an increase of R 179.00 per month for workers in the OP1 grade, but on condition that workers exceed their targets for the financial year ending 31 March 2006. This will result in less than 5% of workers to benefit. Their offer does not include the supervisory grades. Clearly, the link to performance is irrelevant.

CWU is currently demanding an increase of 8, 5% for operational and auxiliary grades and 7, 5% for supervisors. TELKOM is offering 6, 25% and 6% for operational and auxiliary and supervisors respectively. However, their proposal is further compounded by linking the increases to the acceptance of a three year agreement and that those workers who will receive a housing allowance will not qualify for a basic salary increase. As a progressive trade union, we can allow one worker to get a pensionable increase and the other not. It further stipulates that the full increase for supervisors is linked to attainment of an “E” (exceed) assessment and a partial increase linked to an “M” (met) assessment.
 * 2. Salary Increase**

The demand is for a just and equitable distribution of gain sharing without any conditions for the worker. CWU is demanding R 50 000.00 for all workers, including management.This is unlike the huge gain sharing that managers got last year which ranged from just under R 100 000.00 for the lowest ranking manager to a tremendous R 1,2m for the CEO. TELKOM is proposing differentiated grades for workers in the bargaining unit based on grade and linked to performance and a three year term.
 * 3. Gainsharing**

As a result of this unjust practice, workers lost out substantial amounts of money since 1998. CWU’s demand is based on how the compression of grades will be resolved.
 * 4. 20th Percentile**

A moratorium on retrenchments is demanded while the company responded with a 1 year moratorium on condition that it should have the discretion to review it every year.
 * 5. Job security**

CWU is demanding an increase in the subsidy from R 927.00 to R 1150.00 and that workers who do not have bonds should automatically be paid this amount monthly as an allowance. TELKOM’s final offer is that the R927 .00 should remain, but they are willing to pay the amount to workers not in receipt of the allowance currently, but such workers will not get an increase in their basic salary.
 * 6. Housing Subsidy**

Our demand of a 12% increase in medical aid is based on the average increase in the recognized medical aids in TELKOM. We also demand that the subsidy should be 2/3 and that the capping should be removed we further demand that the increase should be from 1 December 2005, due to the fact that BONITAS and PROSANO are affecting its increase each December.
 * 7. Medical aid**

TELKOM’s final offer is twofold: For workers currently in receipt of medical aid subsidy an in crease of 6, 25% is offered. For workers not benefiting from medical aid, the company is proposing R600.00 per month starting from 1 April 2007 and another R600.00 per month from 1 April 2007.

We demanding more shares than the 35shares awarded to workers on the operational levels. TELKOM bought 4% of its shares and awarded 2% of the shares to management and 2% to the bargaining unit. The CEO got about 17000 shares in 2004. CWU’s demand is to increase the shares of workers, who are the backbone of the company and are responsible for its good performance over the years and secured a stable company through sweat.
 * 8. TELKOM Conditional share plan**

9. Leave related issues CWU is prepared to consider a reduction in the capping to 22 days on condition that the encashment of leave is re-introduced, i.e. 7 days per annum for all workers.
 * 9.1 Leave capping**

TELKOM refuses to re-instate the encashment of leave and still wants us to agree to reduce the capped leave to 22days from 25 days.

CWU demanded that all family responsibility leaves should be pooled together (10days) and be utilised as per the workers’ needs.
 * 9.2. Family responsibility leave**

TELKOM agreed to the concept of pooling, but wants to reduce family responsibility leave to 7 days.

The following illustrates CWU’s demand opposed to TELKOM’s final offer:
 * 10. Long Service awards**


 * **CWU demand** |||| **TELKOM final offer** ||
 * 5 years || R 1,500.00 || 5 years || R 1,000.00 ||
 * 10 years || R 2,000.00 || 10 years || R 1,350.00 ||
 * 15 years || R 2,500.00 || 15 years || R 2,030.00 ||
 * 20 years || R 4,500.00 || 20 years || R 4,050.00 ||
 * 25 years || R 6,000.00 || 25 years || R 5,400.00 ||
 * 30 years || R 7,500.00 || 30 years || R 6,750.00 ||
 * 35 - 40 years || R 9,000.00 || 35, 40, 45 years || R 8,100.00 ||

CWU did agree on the non-cash items, which will be chosen by a worker from a list of items, instead of taking the cash.

Issues agreed to
1. Emergency loans - status quo, with conditions 2. Standby allowance - Increase to R380.00 per week (no agreement on year 2008& 2009) 3. Parking- CWU’s demand were partially conceded to (R11, 40) 4. Kilometer rate -Single kilometer tariff for M6/S6 and managers 5. Capping date - changed from 30 June to 31 July 6. TELKOM Pension Fund - The remaining 260 members be allowed another opportunity o join the Retirement Fund on 1July 2006

THE WAY FORWARD
The negotiating team has recommended that members be balloted prior to a strike being called. A strike is always the last option and we made it clear to management that we are still negotiable. A National Executive Committee will be convened very soon to assess the situation and consider the recommendation s of the negotiating team.

By the time of writing of this report, the company’s union, SACU should have entered into an agreement with TELKOM. This prediction will become a reality or the sun will not rise. This will come as no surprise at all, as our suspicions that negotiations continued with SACU outside of the formal meeting will be confirmed.

If an agreement is reached with SACU it will have no legal status due to the fact that they do not have the required threshold to be recognized on their own. However, this will in no way prevent them from claiming easy victories and trying to lure CWU members.

CWU members have got a history of fighting in what they believe is right and if SACU chose the wrong path, they will have to bear the consequences.


 * Forward to a living wage!**
 * Forward to the bettering of the standard of living of workers!**
 * Down with sweetheart unions!**

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