South Africa’s MTN announced the immediate end of a two month long worker strike, after reaching an agreement over bonuses with the country’s Communications Workers Union (CWU).
Approximately 2,000 MTN workers downed tools in May, after demanding a reported 10 per cent pay rise and 16 per cent bonus payments. In the end, CWU agreed to an 8 per cent bonus payment this year, which will increase to 12 per cent in 2016, according to reports.
Both parties are however still at odds over wages, and CWU said it hopes to resolve the situation in 30 days.
In a statement, MTN’s new CEO Mteto Nyati, who replaced Mobily-bound Ahmad Farroukh at the start of the week, apologised for the inconvenience MTN customers suffered during the strike period.
“The agreement serves the common interests of MTN and the employees, and allows MTN to focus on its core reason for existence, which is to deliver services to its customers,” added Nyati.
Local reports emerged earlier this week suggesting MTN had no plans to concede to union demands, and would instead cut hundreds of jobs because the strikes had highlighted it could do without some of its workforce.
MTN employs approximately 6500 people in its home market, and is country’s second largest player behind Vodacom by subscribers.
CWU general secretary Aubrey Tshabalala confirmed members of the union involved in the strike will be expected “to go back to work within two days” after signing the agreement.