MTN staffers in no-bonus protest
Workers also query CEO’s R18.6m share award
NEWS that their bonuses would be revoked this year because MTN had underperformed was too much for staff, who staged a protest at the company’s head office in Fairlands, Johannesburg, this week.
Scores of employees demanding bonuses gathered near the main gates, prompting management to turn away some customers and reschedule meetings, according to security guards.
MTN executives rushed to attend to the protest, which was dissolved within an hour.
Bonuses were due this month but on Tuesday Africa’s largest telecoms firm informed employees by letter that there would be no bonuses because critical performance targets had not been met.
This follows below-inflation salary increments last year.
Themba Nyathi, MTN’s chief human resources officer, said bonuses were declared when targets were measured against revenue, earnings before interest, tax, depreciation and amortisation, and measured cash flow.
“If you fail one, it means the bonus is not declared.”
Last week, MTN said the group earnings before interest, tax, depreciation and amortisation margin rose 1.5 percentage points to 44.8% for the 12 months to December, revenue jumped 6.4% to R146-billion and earnings per share grew just less than 9% to R15.36.
MTN has five levels of em- ployee categories: level 1 consists of operational and administration staff and level 2 of supervisors. Level 3 are managers and on the level above them are general managers. Level 5 employees are typically the executives and the CEO.
Nyathi said level 1 and 2 employees, who had received an increase of 4%, had staged the protest. Apparently the workers were demanding an ex gratia payment — the equivalent of a 13th cheque — that would represent an 8% increase.
“They are saying they’ve given their best and that the organisation retrenched thousands of people last year. Now, they have to carry the workload of those that have left and last year they were paid less than inflationary salary increases,” Nyathi said.
He said workers also queried the R18.6-million in shares awarded to group CEO Sifiso Dabengwa last year.
“Sifiso gets measured across the group, so it’s a different ball game altogether. Each one of us chooses a career. You get remunerated based on the complexity and what the market demands of that job. It’s a little bit of a complex issue but people have got choices.”
According to Nyathi, the average salary at MTN is R190 000 a year.
There are no recognised unions at MTN and last year it dismissed 357 employees for staging an illegal strike at operations in KwaZulu-Natal.
Nyathi said there was no disciplinary inquiry into this week’s event.
MTN will consider the complaints and report back to workers tomorrow.
Listen to Themba Nyathi explain why MTN SA staff are not getting bonuses. Visit timeslive.co.za/businesstimes for the podcast