The role of Telkom SA Ltd in the Western Cape: A case study on the management of its retrenchment process

Abstract

Nature and Scope of the Study

Constant organisational change can be attributed to many factors, including competition among peers in the same markets, globalisation, privatisation of public sector organisations, technological advances, and operational requirements. These factors almost always lead to organisations reducing headcount. One such organisation is Telkom, which bi-annually embarks on large-scale retrenchments. Service organisations within the company were chosen at random to participate in this study. Telkom's Human Resource Management, Legal Services, Employee Relations, and the organisation's recognised unions participated in this study.

Purpose and Objectives of the Study

Through an evaluation of Telkom's staff reduction process, the study seeks to:

Find out what measures Telkom has in place to ease the necessity of retrenchment within the organisation.

Review whether Telkom has looked at other alternatives before planning staff reductions.

Investigate whether a social plan within Telkom exists to help incorporate retrenched employees back into the economy.

Investigate and examine Telkom's compliance with labour legislation, specifically the Labour Relations Act and the Basic Conditions of Employment Act.

Methodology of the Study

Both primary and secondary data was utilised to complete this study. The primary data was gathered by means of distributing questionnaires to existing Telkom employees, conducting a personal interview with Telkom's Agency for Career Opportunities, and e-mail surveys specifically distributed to Telkom's unions with regards to compliance with labour legislation. This form of data made allowance for opinions and facts from participating candidates. The secondary data gathered originated from internal company information, Corporate Communication Broadcasts, online databases, and commercial publications (business periodicals, journals and newspapers).