South Africa: Cell C In Showdown With Workers Union Over Planned Lay-offs
The struggling South African telecoms company, Cell C, is being warned by its workers' union to expect significant pushback over its decisions to sack thousands of its workers.
The Information Communication Technology Union (ICTU) has demanded that Cell C do a volte-face and withdraw the sack notices it gave to the more than its 2,500 employees, and offer them reduced salaries instead. If this is not done, the union will consider further actions against Cell C, it warned.
The telco, on its part, is, however, insisting that the planned lay-offs will go forward. A statement from the company said in no uncertain terms that "Cell C is not withdrawing the Section 189 notices issued to employees".
Cell C as a company is currently under immense financial strain as has been facing severe liquidity and operational constraints with resultant defaults on its obligations and financial commitments. Last year, the company reported a loss of R4.2 Billion (US$242Million).
Credit: contributions from: itweb.co.za