MTN shuts down some services as workers strike

MOBILE operator MTN had to shut down some of its services yesterday after some of its staff members downed tools for the first time in the history of the multi-national company.

Striking MTN workers are demanding a 10 percent salary increase, the conversion of temporary staff to permanent and 16 percent bonus payments.

The Communications Workers Union (CWU), which does not have a recognition agreement with the company, obtained a certificate to embark on the strike from the Commis- sion for Conciliation Mediation and Arbitration on May 6.

In a business climate categorised by intense competition between cellphone operators, MTN’s inability to offer some services to its members, even for just a day, is likely to have a negative impact on the company’s bottom line.

“The company should worry about losing customers because while we are here there is no one there to assist them,” a striking employee said.

Workers also warned the company’s share price would suffer as a result.

MTN’s shares on the JSE fell 2.95 percent yesterday to close at R228.83.

MTN announced after the strike notice was issued that it would pay level one and two employees a guaranteed 4 percent of their annual salaries at the end of each year, and a 13th cheque every year in March.

Voice messages

As the workers protested, MTN customers were subjected to voice messages at the customer call centre services, which said: “Due to unforeseen circumstances, our call centre is currently closed and will reopen as soon as possible. We thank you for your patience and apologise for any inconvenience caused.”

MTN said there had been some impact on its operations.

“The protest action has had minimal impact on our operations. The core operations are running optimally,” the company said in a statement.

Workers said they were aware of the damage their action had on the company’s overall image, but felt their demands needed to be addressed.

“Normally every year we get 30 percent bonuses but this year we missed our target by only 1 percent and manage- ment only offered us 4 percent,” said a striking worker, who did not want to be named out of fear of being victimised.

MTN has said that it did warn it would not be able to pay bonuses as it had failed to reach its minimum financial targets in the past financial year.

However, it did pay a R6.6 million bonus to MTN SA managing director Ahmad Farroukh, on top of the R17.5m he took home in the same year.

CWU president Clyde Mervin said the union was pleased with the turnout. “We are very happy we managed to bring MTN to its knees.”