MTN SA to reduce workforce by 7%

MTN South Africa, has advanced strategies to reduce its permanent and temporary workforce as a result of the decline in the economic environment.

Ms Bridget Bhengu of MTN SA Communications department, confirmed this on Monday in a press statement made available to ITRealms Online.

She said that approximately 403 permanent employees may be affected towards the end of March next year, which comprises about 7 per cent of MTN SA’s 4,679 permanent employees.

Equally, she disclosed that MTN SA would reduce the number of temporary employees in its service during 2010, stressing that MTN SA would try to limit the number of jobs affected.

She explained that in order to mitigate the effects of possible job losses, a proper consultative route has been initiated, firstly to avoid retrenchments and redundancies and secondly to mitigate its adverse effects to be followed in line with legal requirements.

According to her, 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 through ICAS, registered with the company for such a purpose, while re-employment agreements will be entered into for a period of six months.

She further said that in light of greater efficiencies that are being achieved, together with the decline in the customer base, MTN has foreseen fewer resources will be required in the near future.

“Since approximately 3,000 people are supplied to MTN by temporary employment services, these numbers would also be reduced during 2010,” she said.

Additionally, the reductions of workforce, MTN SA said, 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 RICA compliance issues.

ITRealms Online recalls that MTN SA launched service in 1994 as part of the MTN Group, a multinational telecommunications group, operating in 21 countries in Africa, Asia and the Middle East.

The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN”.

As at 30 September 2009, MTN recorded 108,4 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia.

The MTN Group is a global sponsor of the 2010 FIFA World Cup South Africa and has exclusive mobile content rights for Africa and the Middle East.

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