Telecommunications company announces possible retrenchments

Mobile Telephone Networks (MTN) South Africa plans to reduce its permanent and temporary workforce as a result of the decline in the economic environment, starting on the 1 December 2009. Four hundred and three (403) permanent employees may be affected towards the end of March 2010, which comprises about 7 percent of MTN South Africa’s 4 679 permanent employees.
 

MTN South Africa will also be reducing the number of temporary employees in its service during 2010. The company expects to save as much as 170 million rand ($23 million) a year after cutting 7 percent of its permanent workforce and about half its temporary workers, Human Resources Director Themba Nyathi said.

The Times reported that job loses will include 120 staffers from MTN service centers, 71 from customer operations, 70 from distribution, 40 to 50 from finance, 41 from corporate sales, 21 and 20 from human resources and marketing and 10 from the technology department.

According to a statement released by the company, severance of two weeks’ pay for each completed year of service is payable and if retrenchments are inevitable, affected staff will be given time off to seek alternative employment well in advance of working their notice periods. Counseling, staff support and assistance will be made available by the Human Resources Department. Re-employment agreements will be entered into for a period of six months.

Currently 3 000 people are supplied to MTN by temporary employment services, these numbers would also be reduced during 2010. In addition to the reductions in its workforce, MTN South Africa is re-engineering its business in response to an outlook of lower growth due to the negative impact of the global recession on consumer spending and Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA) compliance issues.

Reagan Malumo
Programme Officer: Media Freedom Monitoring and Research
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