MTN to retrench managers

Cellphone network service MTN is planning to retrench some of its managerial staff in South Africa, it said on Monday.

"MTN SA has begun a process of internal staff consultations on a proposed organisational restructuring for better efficiencies," said Themba Nyathi, chief human resources officer.

He said the consultation was still at an early stage and the market would be informed when key decisions had been made.

"This is part of the ongoing process of renewal that allows us to deliver the strategic investments and product innovations."

The process would also allow provision of new services and ensure MTN's sustained competitiveness in a rapidly evolving market.

It was not immediately clear when the retrenchments would take place.

On Monday, trade union Solidarity said the network service had notified its 847 managers that it was planning to retrench them.

Spokesman Marius Croucamp said the company had cited weak earnings and growth.

MTN dismissed allegations that it would be retrenching 847 managers.

"We are still in consultation and it is still too early to know the numbers," said Nyathi.

Croucamp said Solidarity was unhappy that MTN failed to inform its employees that registered trade unions may represent their members during the layoffs.

“Solidarity will meet with the company's management. We will then officially raise objections to the employer's failure to inform employees that they are entitled to receive assistance from their trade unions during the process.”