South African telecommunications services provider Telkom has confirmed that negotiations between itself and the Communication Workers Union (CWU) over union members affected by the current Section 197 process have reached deadlock. The Company has announced that it will offer Voluntary Severance Packages (VSP) and Voluntary Early Retirement Packages (VERP) to CWU members.

In a media statement issued by Telkom, the Company explained that two weeks ago it had approached organised labour with an offer related to the Section 197 process to outsource elements of its business to external companies.

According to the statement the offer was two-fold: Telkom offered all unions the opportunity to access VSP and VERP to affected members, and the opportunity to extend the transfer date for exiting Telkom employees from 31 March to 30 April.

Telkom says the offer was accepted by two unions, the South African Communication Union (SACU) and Solidarity, but rejected by CWU.

"While Telkom respects the right of our people to choose to be affiliated to a union, we also know that union members are firstly Telkom employees. Our affected employees have made it very clear that they want the option of a VSP or VERP in making their final decision. This has repeatedly been communicated by many of the affected employees to their Telkom line managers", said Telkom spokesman, Jacqui O'Sullivan.

In its statement Telkom claims that despite repeated attempts to engage with CWU to secure what it calls "a fair and equitable outcome for all employees whom are affected by this Section 197 process", the union has not agreed to sign a variance agreement.

The telecoms services company says it is now exercising its right as the employer to approach affected employees directly.

CWU representatives could not be reached for comment.