SECTION A

 1. PREAMBLE AND DEFINITIONS                                                               

1.1       PREAMBLE                                                                                 

1.2       DEFINITIONS                                                                               

2. PURPOSE OF THE AGREEMENT                                                           

3.         PRINCIPLES                                                                                           

 SECTION B  

SOCIAL PLAN PHASE I 

4.    THE TELKOM EFFICIENCY FORUM                                                        

5.    COMPOSITION OF THE TELKOM EFFICIENCY FORUM                           

6.    FUNCTIONS OF THE TELKOM EFFICIENCY FORUM                              

7. ALTERNATIVES that could be CONSIDERED TO avoid DISMISSALS DUE TO OPERATIONAL REQUIREMENTS                                                                                   

8. TERMS AND CONDITIONS REGULATING TRANSFERS OR RELOCATIONS IN TERMS OF THIS AGREEMENT                                    

8.1       NOTICE OF PROPOSED TRANSFER                                           

8.2       EMPLOYEE MUST CONSENT TO TRANSFER

 8.3       MINIMUM REQUIREMENTS FOR TRANSFER

SOCIAL PLAN PHASE 2 

9. Minimum requirements for DISMISSALS DUE TO    

           OPERATIONAL REQUIREMENTS                                                

10.       NOTICE                                                                                                         

11.       CONSULTATION                                                                                         

12.       SELECTION CRITERIA                                                                              

13.       SEVERANCE PAY, REMUNERATION AND OTHER BENEFITS        

14. ADDITIONAL ASSISTANCE                                                                      

15. TRAINING                                                                                                    

16. RE-EMPLOYMENT OR RECALL PROCEDURE                                  

 SOCIAL PLAN PHASE 3        

17.1    SOCIAL PLAN                                                                                             

17.2REGENERATION OF LOCAL ECONOMIES ADVERSELY  

           AFFECTED BY DISMISSALS DUE TO OPERATIONAL  

           REQUIREMENTS                                                                                         

SECTION C

18.       DISPUTE RESOLUTION PROCESS  

18.1  Resolving disputes regarding interpretation or application of THIS agreement

18.2      OTHER DISPUTES 

19.    COMMUNICATION WITH UNION MEMBERS

20. COSTS OF DISPUTE

SECTION D

21.       EXTERNAL ASSISTANCE TO THE PARTIES  

22.     EXTENSION OF TIME PERIODS                                                             

23.     CONFIDENTIALITY                                                                                    

24.     AMENDMENT TO AND TERMINATION OF THE AGREEMENT         

25.     NOTICES AND DOMICILIA 

SECTION A

1. PREAMBLE AND DEFINITIONS

1.1     PREAMBLE

The Company and the Union recognise that significant benefits have been realised and will continue to be realised from co-operative management-union relationships.

Through such a mutually beneficial relationship, the Parties can explore innovative methods to transform the workplace to enhance the Company’s effectiveness and competitiveness and to maximize employees’/members’ satisfaction with their work.

With this in mind the Parties realize the need for a job security and retrenchment framework agreement which seeks to maximize the job security of employees, to minimize job losses and where such losses are unavoidable, to provide for fair, just and equitable processes and procedures to address job losses. Within the framework agreement endeavours will be made by both Parties to foster job creation, job retention and job enhancement.

1.2     DEFINITIONS

2. PURPOSE OF THE AGREEMENT

The purpose of this Agreement is to establish principles and procedures:

2.1.      that will engender a sense of job security for employees,

2.2 to regulate the process to be followed prior to any dismissal of employees due to operational requirements,

2.3 to regulate the process to be followed where dismissals due to operational requirements are unavoidable,

2.4 to provide for dispute resolution mechanisms for the purpose of this Agreement.

3.         PRINCIPLES

3.1 Subject to the provisions of this Agreement, the Company will seek to engender job security for every employee by seeking ways and means to avoid / minimize dismissals due to operational requirements, by considering all possible alternatives that could address the operational needs of the Company and apply every reasonable alternative to avoid dismissals due to operational requirements.

3.2 Prior to taking any decision to dismiss employees due to operational requirements, the Company will consult with the Union, with a view to reaching agreement.  

3.3 The Company commits itself to the optimal development of the skills of all employees in accordance with its business needs.  Every worker must be provided with the opportunity to participate in the skills development programmes as provided for in the Company’s skills development and employment equity plans.

3.4 The Parties agree to constitute a forum, referred to as the Telkom Efficiency Forum (hereinafter the “TEF”), the composition, scope and functions of which are detailed in this Agreement. The task of the TEF will primarily be to look ahead to identify problems, challenges and possible solutions, in an endeavour to prevent job losses.

3.5 All decisions regarding dismissals due to operational requirements and decisions affecting the job security of employees must be the subject of consultations with a view to reaching an agreement.  In the event of a failure to reach agreement, the dispute resolution procedures in this Agreement must be followed. 

3.6 The Company may not introduce any plan or make any operational change that is designed to, or has the effect of escaping or avoiding any law or provision of this Agreement that aims to promote the job security of any worker. Similarly, the Union will conduct itself in a lawful manner when dealing with dismissals due to operational requirements or alternatives to avoid or minimise such dismissals. 

3.7 The nature of operational changes must, as far as reasonably possible, be conducive to boost the Small and Medium sectors, have sustainable affirmative action implications and facilitate genuine black economic empowerment, as defined in the Company’s black economic empowerment policies, as amended from time to time.  The capacity of the historically disadvantaged communities to participate and benefit fully in the Social Plan programmes should be ascertained and enhanced.

 SECTION B

SOCIAL PLAN PHASE I

This Phase sets out the process and issues for consultation with the objective to seek ways and means to avoid job losses.

4.     THE TELKOM EFFICIENCY FORUM

Purpose of the Telkom Efficiency Forum:

4.1 to endeavour to prevent job losses and to find ways and means to avoid and/or minimize dismissals due to operational requirements the Company will, at this forum, share with the Union information about the business generally, and specifically information on:

4.1.1 its key business plans and plans for its future development, growth, and changes with a view to making the Company productive, profitable and competitive;

4.1.2 any early warning signals of potential job opportunities or losses.

                        4.2 to draw up a constitution for the TEF.

4.3 to adopt a proactive approach to prevent job losses where possible. Ideally, this would first involve turn-around strategies that aim to sustain Telkom. If there is no viable option to achieve operational requirements through turn-around strategies, redeployment strategies should be considered before the dismissal of employees  due to operational requirements is contemplated. This would involve developing and implementing creative schemes to provide alternative job placements.

5.         COMPOSITION OF THE TELKOM EFFICIENCY FORUM

5.1 The TEF should consist of the following representatives:

5.1.1 Telkom management, including decision makers representing the relevant service organisation/s;

5.1.2 Six (6) representatives from the Union.

5.2 The TEF may establish sub-committees at service organisation level, as and when required, which will report to the TEF. The functions of the sub-committee of the TEF will be to deal with any matter as mandated by the TEF.

5.3 The TEF will have a Secretariat constituted of one (1) representative from each Party. The functions of the Secretariat will be:

5.3.1 to arrange for TEF meetings,

5.3.2 to compile the agenda for the TEF meetings,

5.3.3 other logistical and administrative tasks.

6.     FUNCTIONS OF THE TELKOM EFFICIENCY FORUM

6.1 To develop turnaround strategies aimed at preventing and/or minimizing job losses. These strategies must aim to sustain the Company.

6.2 Where it is not viable to achieve operational requirements through turnaround strategies, redeployment strategies shall be considered before dismissals of employees due to operational requirements are contemplated. This would involve developing and creating schemes based on justifiable business needs to provide alternative job opportunities and to retrain/re-skill accordingly.

6.3 To make recommendations to the Company Forum dealing with job security and retrenchments.

7. ALTERNATIVES that could be CONSIDERED TO avoid DISMISSALS DUE TO OPERATIONAL REQUIREMENTS

7.1 The Company will consult with the Union with a view to reaching an agreement on alternatives to possible dismissals due to operational requirements, and consideration will be given to the following: 

7.1.1 allowing for downsizing through natural attrition.  

7.1.2 retraining employees for vacant positions in the department or service that is contemplating dismissals for operational reasons, or in other departments or service within the Company

7.1.3 subject to company approval, allow Swapping.

7.1.4 offering voluntary severance packages or voluntary early retirement packages, where possible.

7.1.5 reducing hours of work for employees, with a concomitant reduction of salary and benefits, calculated at the existing rate of pay. 

7.1.6 releasing employees from active employment during periods of inactivity with a concomitant reduction of salary and benefits over a specified period to be agreed between the Parties.

7.1.7 ceasing the recruitment of new employees and filling vacant positions from internal sources as far as reasonably practicable.

7.1.8 minimising overtime.

7.1.9 sending employees, where appropriate on a voluntary basis, on paid leave in those cases where employees have leave credits or granting extended unpaid leave for those who have no leave credits.

7.1.10 replacing the services of temporary employees with Affected employees.

7.1.11 giving Affected employees the opportunity to fill lower graded vacant positions at their existing rate of pay (applicable only where the transfer is one grade below incumbent’s current grade), subject to exceptions in respect of their incentives and/or benefits.

7.1.12 applying recommendations from the Communication Sectoral Job Summit.

7.1.13 transferring the Affected employees to alternative positions in:

7.1.13.1 other departments within the Company,

7.1.13.2 other operations in the Company,

7.1.13.3 accordance with agreements that may emerge from the Communications Sectoral Job Summit.

7.1.14 exploring whether there are less restrictive and less disadvantageous means to achieve the Company’s purpose.

                       7.2 In the process of consulting on the above aspects the Company shall tender reasons for                        rejecting any or all of the above alternatives.

8. TERMS AND CONDITIONS REGULATING TRANSFERS OR RELOCATIONS IN TERMS OF THIS AGREEMENT

8.1       NOTICE OF PROPOSED TRANSFER

8.1.1 When the Company considers transferring any employee or employees, who are members of the Union within the Company, the Company must give the Union one (1) month’s written notice.

8.1.2 The notice must contain all the information that the Union requires to participate in meaningful consultation about the proposed transfer, including but not limited to the following:

8.1.2.1 the reason for the transfer,

8.1.2.2 the employee or employees to be transferred,

8.1.2.3 the terms and conditions of employment and benefits related to the new position; including any specific changes to the terms, conditions and benefits of the employee/s,

8.1.2.4 the timing of the transfer,

8.1.2.5 the process to be used to identify the employee/s for transfer.

8.2 EMPLOYEE MUST CONSENT TO TRANSFER

8.2.1 An employee may only be transferred to another department or service organisation within the Company with the employee’s consent.

8.2.2 An employee who consents to be transferred must be so transferred.

8.2.3 The transfer must be in accordance with the transfer / relocation allowances provided for in the HR policies.

8.2.4 An employee, who unreasonably does not consent to a transfer that complies with the minimum requirements in clause 8.3 of this Agreement must, as a last resort, be paid the severance pay in terms of this Agreement, should no other viable alternative be available. 

8.3 MINIMUM REQUIREMENTS FOR TRANSFER

8.3.1 Unless otherwise agreed, the transfer of any employee within the Company may not:

8.3.1.1 result in less favourable terms and conditions of employment subject to clauses 7.1.5 and 7.1.11 of this Agreement,

8.3.1.2 result in a reduction of benefits subject to clauses 7.1.5 and 7.1.11 of this Agreement,

8.3.1.3 affect the continuity of service of the employee.

SOCIAL PLAN PHASE 2

This phase sets out the process and issues for consultation with a view to reaching an agreement in circumstances where, having considered and implemented avoidance and minimizing measures, covered under Phase 1 above, the dismissal of employees due to operational requirements is unavoidable.

9. Minimum requirements for DISMISSALS DUE TO OPERATIONAL REQUIREMENTS

Legitimate reasons for dismissals due to operational requirements will be substantively and procedurally fair only if all relevant factors are considered, including but not limited to:

9.1 the operational, technological or structural changes to the Company’s business which necessitates dismissals due to operational requirements; and

9.2 the process to be followed prior to dismissals due to operational requirement is in accordance with the provisions of this Agreement and all applicable legislation.

10.       NOTICE

A written notice of the proposed dismissals due to operational requirements will have to be given to the Union, which notice shall contain relevant information to enable the Union to participate meaningfully in the consultations with a view to reaching agreement. The information should include, but not necessarily be limited to:

10.1 a full report with recommendations from the TEF;

10.2 alternatives considered and reasons for entering Phase 2;

10.3 the number of employees who will be affected and their job categories;

10.4 the sections and departments of the Company from which the employees will be dismissed due to operational requirements;

10.5 the estimated period for which the Company will be unable to provide work for the employees, where it is realistically possible to provide such an estimate;

10.6 the selection criteria, in terms of which the Affected employees will be identified;

10.7 the skills of the Affected employees and the skills need of the Company;

10.8 the proposed date of dismissal due to operational requirements;

10.9 any assistance that the Company proposes to offer to the employees likely to be dismissed due to operational requirements;

10.10 any re-employment opportunities identified in the Company.

11.&nb