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MTN SA to do its utmost to minimise the impact of employee strike on customer service

MTN SA would like to assure all of its subscribers that it will do its best to provide customers with products and services at optimal levels, while some of the employees go on industrial action next week.

MTN SA regrets and apologises for any inconvenience that may be experienced by its subscribers during this period.

Customers are urged to be patient should they experience any delays when trying to reach the company's call centres. MTN SA will do its best to meet the needs of all its valued customers, as it remains committed to maintaining high levels of service at all times.

The planned protest action by MTN SA's staff affiliated with the Communication Workers Union follows approval by the Commission for Conciliation, Mediation and Arbitration (CCMA) for some of MTN's staff to engage in industrial action in support of their demands for a bonus increase. Today, the union notified MTN of a workers' strike planned for Wednesday next week.

As part of its constructive industrial relations ethos, MTN SA has had engagements with its employees on the following issues:

* Review of the current bonus model - MTN's people asked for a guaranteed 13th cheque;* Return of the canteen subsidies;* Cellphone allowances; and* Introduction of MTN Shine (a new reward and recognition programme).

Chief HR Officer Themba Nyathi said, based on these consultations, MTN SA last Friday announced the following significant measures, among others:

Review of current bonus model

* Level one and two employees will now qualify for a guaranteed 4% of their annual salary at the end of each year - specifically in the 19 December 2015 payday.* Level one and two employees will additionally get a guaranteed 13th cheque every year in March. Both the 4% annual salary and the 13th cheque payments will be guaranteed, irrespective of the company performance.

Canteen subsidies

* Canteen subsidies have been returned and increased in response to employee feedback.

Cellphone benefits

* The data limit for employees was reviewed and increased in line with personal usage. An extra SIM card was added to be used by any person of choice nominated by staff.

Medical aid/wellness benefits

* Medical aid and wellness benefits remain unchanged.

Year-end functions

* Although year-end functions were removed in an attempt to contain cost, a subsidy was provided per employee.

MTN refutes as grossly incorrect claims by the CWU that it had historically given its staff a 30% bonus. In addition to MTN's remuneration measures announced last week, MTN would like to stress the following as part of its comprehensive remuneration offering:

* Sundays and public holidays are paid as per the Basic Conditions of Employment Act.* MTN does not have temporary staff, or labour brokers as such, as claimed by the union. Its operational services are outsourced.* MTN does not recognise CWU as it does not meet the membership threshold as required by the law.* MTN has one of the highest competitive benefits and remuneration practices in the industry.* MTN recognises that employees have a voice, and as such, engages them directly on all business and industrial relations matters.* In addition to the above, MTN engages with the unions on all issues.* MTN has consistently won Best Employer and Most Empowered Organisation awards over the years in recognition of its transformation and fair labour practices.

"MTN SA continues to benchmark its pay and benefits offerings against the best in the market. As such, we must continue to stay competitive in order to attract, retain and develop top talent," concluded Nyathi.

MTN

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 the end of 30 June 2010, MTN recorded 129.2 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 http://www.mtn.com and http://www.mtnfootball.com.