MTN SA embarks on a headcount management drive to improve operational efficiencies
MTN SA plans to reduce its permanent and temporary workforce as a result of the decline in the economic environment. Approximately 403 permanent employees may be affected towards the end of March next year, which comprises about 7% of MTN SA’s 4 679 permanent employees.
MTN SA will also be reducing the number of temporary employees in its service during 2010. MTN SA will try to limit the number of jobs affected.
To mitigate the effects of possible job losses, a proper consultative route - firstly to avoid retrenchments and redundancies and secondly to mitigate its adverse effects - will be followed in line with legal requirements. Severance of two weeks’ pay for each completed year of service is payable and if retrenchments are inevitable, affected staff will be given time off to seek alternative employment well in advance of working their notice periods.
Counselling, staff support and assistance will be made available by the Human Resources Department through ICAS, registered with the company for such a purpose. Re-employment agreements will be entered into for a period of six months.
In light of greater efficiencies that are being achieved, together with the decline in the customer base, it is foreseeable that fewer resources will be required in the near future. Since approximately 3 000 people are supplied to MTN by temporary employment services, these numbers would also be reduced during 2010.
In addition to the reductions in its workforce, MTN SA is re-engineering its business in response to an outlook of lower growth due to the negative impact of the global recession on consumer spending and RICA compliance issues.
The re-engineering process and entails constructive initiatives to improve the business. These initiatives include:
* Business process re-engineering in order to achieve process delivery effectiveness, seamlessness of operations and fast, responsive turnaround times;
* The centralisation of support centres and services in order to create economies of scale, integration and consequently, greater efficiency;
* The provision of franchise opportunities on selected MTN SA outlets, and in so doing decreasing operating expenditure (OPEX) substantially;
* Increased innovation in all segments of the MTN SA value chain;
* The reduction of costs and the curtailing of unnecessary expenditure throughout all levels in the company;
* An increased and targeted focus on sales and marketing strategies aimed at revenue creation and financial sustainability; and
* Delivery of a robust, quality network to MTN SA’s customers in order to retain the existing customer base.
ENDS
-Issued by MTN Group Corporate Affairs
ABOUT THE MTN GROUP
Launched in 1994, the MTN Group is a multinational telecommunications group, operating in 21 countries in Africa, Asia and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: "MTN". As at 30 September 2009, MTN recorded 108,4 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. The MTN Group is a global sponsor of the 2010 FIFA World Cup South Africa™ and has exclusive mobile content rights for Africa and the Middle East. Visit www.mtn.com and www.mtnfootball.com
For more information please contact:
Bridget Bhengu
MTN SA Communications
Mobile: +27 83 212 1964
Email: bhengu_b@mtn.co.za
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