MTN to cut jobs following strikes in SA - Mobile World Live

MTN to cut jobs following strikes in SA

13 JUL 2015

MTN reportedly plans to go through with hundreds of job cuts, following an eight week strike by 2,000 workers in South Africa.

According to local newspaper Business Report, the company, which said last week it had no plans to concede to worker demands to end the action, will instead opt to shed jobs, after the strike showed it could do without some of its workforce.

Workers are seeking a 10 per cent increase in wages and 12 per cent in bonuses, but the strike is reportedly beginning to lose ground after the country’s Communications Workers Union (CWU) called off action in the Kwazulu-Natal province, which has seen the most incidents of violence.

CWU said MTN cut 578 positions earlier this year, and workers participating in the strike have already lost out on two months wages. Entry level staff reportedly rejected an eight per cent pay increase offer earlier this month.

Industrial action over jobs is commonplace across South Africa, where unemployment stands at over 25 per cent.

Ahmad Farroukh resigned from his as CEO of MTN in South Africa last week, while the strikes were ongoing, and was yesterday announced as the new CEO of Mobily in Saudi Arabia.

According to GSMA Intelligence, South Africa is MTN’s second largest market after Nigeria, with 22.4 million connections and a 32 per cent market share.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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