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Telkom disappointed by Labour Court ruling

Telkom will now have to go back to the drawing board before restructuring.

Telkom's offices in Pretoria. Picture: Barry Bateman/EWN.

JOHANNESBURG - Telkom says it's disappointed after today's Labour Court ruling ordering the company to halt restructuring and retrenchments.

Solidarity and two other unions won a court bid to stop Telkom from retrenching more than 4,000 employees.

The fixed line operator's restructuring process, which was aimed at saving costs, was implemented two years ago.

There were cries of relief in the court room from union officials when presiding Judge David Gush ruled that Telkom must withdraw retrenchment notices until all internal processes have been exhausted.

The company will now have to go back to the drawing board before restructuring.

Trade union Solidarity's Marius Croucamp says it's a victory for the workers.

"It's a victory especially for workers, and that a significant number of workers are entitled to a fair process."

Telkom's decision to cut jobs was the latest phase in the company's turnaround strategy implemented two years ago.

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