CWU+Memorandum+of+Understanding+26+April+2006

Memorandum of Understanding

 * by and between**

=Telkom SA (Ltd)=
 * (“The Company”)**


 * and**

=Communication Workers Union=
 * (“CWU”)**

1. The Company will engage Organised Labour at the Company Forum during the period 2 May 2006 to 31 July 2006 on the establishment of the Coalition of Telkom Unions (CTU), or a similar body, in terms of the provisions of the Labour Relations Act, no 66 of 1995, as amended.

2. The Company will engage Organised Labour at the Company Forum during the period 1 August 2006 to 30 September 2006 on the issue of an Agency Shop as provided for in terms of the provisions of the Labour Relations Act, no 66 of 1995, as amended.

3. CWU will submit a motivation to the Company to improve the allocation of shares to employees in the Bargaining Unit, prior to the next allocation of shares in terms of the Telkom Conditional Share Plan (TCSP).

4. Special arrangements will be made to pay only the salary increases, as per the Collective Agreement on Substantive Matters, to CWU members on Wednesday, 3 May 2006.

5. Special 2-hour report back meetings on the Collective Agreement on Substantive Matters will be granted. The normal arrangements for such report back meetings will apply.

6. CWU Shopstewards will be given training sessions on the Collective Agreement on Substantive Matters on the basis of ten (10) Shopstewards, nominated from each of the following areas: - Pretoria - Johannesburg - Port Elizabeth - Cape Town - Bloemfontein - Durban

7. For the strike/lock-out period (18 to 25 April 2006), the Company will deduct unpaid absences from duty (“no work, no pay” principle) up to a maximum of four (4) days on payday, 23 June 2006, after employees in the bargaining unit have received their gainsharing bonuses, and up to a maximum of two (2) days on payday, 25 July 2006.


 * For TELKOM:**
 * (duly authorised representative)**


 * For CWU:**
 * (duly authorised representative)**


 * Witnesses:**


 * 1. _ __2.__ _**


 * DATE: 26 April 2006 PLACE: PRETORIA**