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02
Value creation
What is material in our
value-creation process?
Stakeholder group and why they
are important to us
Their interest inTelkom Our response
Organised labour
Organised labour supports
sound labour practices and
assists in communication of
labour-related matters. They are
a strategic partner in creating
shared value between the group
and our employees. The nature
of the relationship can influence
the group’s strategic plans
through industrial action
Telkom’s commitment to
transformation, diversity, EE and
skills development
Telkom revised the EE and disability policies
to include organised labour concerns. We also
implemented transformation and skills development
programmes which include learnerships and
preferential recruitment
Conflicting relationships
An engagement framework has been developed
to improve the relationship betweenTelkom and
organised labour
Uncertainty related
to restructuring
We held interactive GCEO strategic briefing sessions
with union leadership on company performance,
initiatives, changes and strategic direction
Collaborative partnership
agreement – wage gap
Industry and market-related benchmarks are
conducted in determining appropriate market
positioning offerings which are higher than the
minimum prescribed wages. In addition,Telkom
recognises “equal pay for work of equal economic
value”, and strives to remunerate employees doing the
same work or substantially the same work, within the
same range in accordance with the Labour Relations
Act. However,Telkom recognises that there could be
differences which are attributed to the following:
>
Individuals’ respective seniority or length of service
>
Individuals’ respective qualifications, ability,
competence or potential above required levels of
performance for the job
>
Individuals’ performance – all employees
are equally subject toTelkom’s performance
management system
>
An individual is demoted due toTelkom’s
restructuring without a reduction in remuneration
>
Individual’s lack of relevant skill for a particular
job level
>
Any other differentiator as long as it is not unfairly
discriminatory
To this end, all bargaining unit employees were placed
on the market 50th percentile of their respective
functional areas
Reduction of full time shop
stewards
The spirit of the new full-time shop stewards’
collective agreement aligns to the newTelkom’s new
operating model and embeds the operation of the
newly established Strategic Business Unit Forum
structures. These forums are aimed at driving
business unit-specific discussions
Performance and development
management (PDM) policy
Performance management focuses on defining key
performance indicators (KPIs) for all employees
to implement a high-performance management
culture that is outcome-oriented, consistent,
simple and practical. More rigorous consequence
management is a desired outcome of the KPI and
target-setting process with specific focus on
>
Targets linked to business outcome and
financially incentivised
>
Consistent cascading down to the lowest levels
>
Accelerated performance feedback to a
three-month review cycle
>
Clearly defined consequence management
process (coaching, evaluation, etc.)
Our stakeholder concerns and our responses
Stakeholder
engagement
– continued