turk-internet.com’s first question during interview, entitled “Turk Telekom, 15 Months After Privatization” was regarding Turk Telekom’s organization. Dr.Doany quotes the rest of this question as follows:
Dr.Paul Doany : On the organisational side, we have commenced setting up of a ‘Management Headquarter’ in Istanbul, using one of the TT buildings in Etiler. Ankara will become the ‘Operations Headquarter’, in which we will have network, IT, in addition to overall Support Services Department for the entire organisation. We will also maintain support units for sales/marketing, customer care, in addition to finance, regulatory, legal, human resources, corporate & public relations.
Accordingly, the new HQ in Istanbul will house: CEO office: Commercial Department (Marketing, Sales & Customer Care); Strategy Department (a new department that will centralise strategy development across the entire company); Program Office (managing all the active projects in the company, which is also a new department); Finance; Legal; Regulatory, HR and Corporate Affairs.
As to the provincial directorates, we don’t plan any immediate changes in the structure presently, except the need to ‘centralise’ commercial management functions (i.e, sale/marketing). In that regard, we will operate a ‘matrix’ organisation, with the Provincial Directors having oversight leadership in their respective areas. We announced this during our meetings in Antalya in January, where we gathered over 5000 persons from all the 82 provincial directorates, including also our external dealers, franchisees, and main solution partners. We will be visiting our provincial directorates very soon to further elaborate this matrix organisation.
TTNet is now operating from their own premises, externally to TT. A new management team is in place, and we are very excited about the results they will achieve this year.
Question – 2 : You have offered two types of employment contracts to your personnel, which are called Contract Type 1 and Contract Type 2. However there appear to be some problems expressed by the staff. Why did you make such a separation of contracts last year? How do you plan to address this problem?
Dr.Paul Doany : As you know, employees with civil servant status had a right to return to Government, and were given a period of time to make that decision under the applicable laws. This initially mandated a period of five months (plus one month notice), which led to 9581 employees choosing to return to Government (by the end of 2006). The main reason these employees decided to return appears to relate mostly to ‘job security’, as they were not satisfied with the level of job security offered, whereas some simply preferred to remain in public service; we respect this viewpoint, and acknowledge that a private company cannot provide the same level of job security as a Government entity. On the other hand, as a private company we can offer much more opportunities to its employees.
The initial period of five months from November 2005 was then followed by an entitlement to increase their civil servant status for ‘up to five years’. In that regard, employees electing to stay in the company were subject to a new employment contract that still preserves their right-of-return to Government – this we called Contract Type 2. Employees that accepted to commit to the company, and thus remove their right of return, signed Contract Type 1. So we had to have two types of contracts.
Contract Type 2: we consider these employees to be in a ‘transition period’, and that although their status may be maintained for ‘up to five years’, in case both the employee and company elect to extend to such maximum period, it is not our intention to extend the period much beyond this year, except for ‘critical’ and indeed, exceptional personnel.
Obviously we need to have committed personnel, who see a future for themselves in the company, and not just serving time for a period, only to return to Government when it ‘suits’ them. That is not the intention of applicable law, which caters to rights of the employee as well as that of the company.
Contract Type 1: Employees who accepted to drop their right of return to Government, and bound themselves to the company, were offered salary increases and certain guarantees (such as job security for up to five years, job location security, etc.).
In summary therefore, we consider that employees who signed Contract Type 2 needed more time to make a decision about entering into a new employment contract (such as C1), in which they must give up their right of return. Last year (2006) was the transition year for their first decision, and 2007 will be the decisive year for most.
Our plan therefore is to be very selective about C2 employees remaining – i.e., in principle, those who wish to change their status will be considered for continuation with the company, and those who don’t, should return to Government.
Question – 3 : Contract Type 2 personnel have received a 5.3 percent increase in their salaries. Contract Type 1 personnel wonder whether they will receive a salary increase. What do you want to say?
Dr.Paul Doany : As explained, Contract Type 2 employees have certain rights relating to their status, but these will only apply while they are with Turk Telekom. I believe that many of them should be soon returning to Government, unless they are willing to sign new contracts where they don’t retain the right to return.
This was a transition to allow them to decide. Hence their salary increases should not be compared with others. My expectation is that we will have very few Contract Type 2 personnel in the very near future.
As to Contract Type 1, I am aware that some feel disappointed, as the salary differences between C1 and C2 are lower than they had expected, when they compare with the ‘net’ salaries of C2. Due to the taxation entitlement of C2, C1 salaries are higher by only 10 to 15% in some job categories.
It is my view that C1 persons should not compare themselves with employees who will soon be leaving the company.
We will decide on the C1 salary increases in March, which will be implemented retroactively as from January 2007.
Following chapter will be read at Doany : Oger Telecom Staff is Assisting TT Staff – 3
Turkish translation of that part at Doany : Tip-1 in Zam Mart Aynda – 2