Some 503 Telecommunications Services of Trinidad and Tobago (TSTT) workers have received termination letters.
Among those served with the notices yesterday was Communication Workers’ Union (CWU) president general Clyde Elder.
In response, the union is now planning a retaliatory protest outside TSTT’s head office today, with plans to ramp up the protest action at different levels targeting the country’s hierarchy.
Speaking with the T&T Guardian yesterday, Elder said after the first protest outside TSTT’s head office they are planning action outside the offices of Minister of Public Utilities Robert Le Hunte and Prime Minister Dr Keith Rowley.
“We are exploring all legal options as well,” Elder said.
The union is also unsure of how many workers are being terminated as TSTT has refused to supply the names of any terminated workers who are not part of the CWU bargaining unit.
In the letter to the union, however, TSTT seemed to blame the layoffs squarely on the union’s shoulders.
“Persons could not have been trained because of your union’s position on the improvement of skills. Persons could not be promoted because the organisation was out of alignment,” the TSTT letter said.
TSTT pointed out in the letter that because of its high salary output, “business as usual is not an option.”
“At 35 per cent of revenue, our employee costs are significantly above the 15 per cent average,” TSTT said.
The company referred Elder to a meeting with the union on October 26, in which it pointed out that it had operated at a loss of some $32.5 million at the end of March 2018. In the ensuing six months, the company said its losses stood at $478.8 million.
“This loss includes a charge of $356 million associated with unpaid receivables by our CCTV client and given the new reality, represents a fundamental revenue adjustment going forward,” the TSTT letter said.
In the letter to Elder, TSTT said the company was last restructured in 1999, some 20 years ago.
“Over the years the deliverables and roles and responsibilities have changed. In other words, people were doing work which was not aligned with customer needs,” the company said.
All workers can expect to be paid off their severance by the end of January, TSTT noted.
With regards to Elder’s termination, the company said it had utilised the Last In First Out method of retrenchment. He was told to deliver all company property and identification to the company by the end of December.
In a media release yesterday, TSTT CEO Ronald Walcott said this was the first wave of job losses. The second phase of restructuring will include the rationalisation of non-unionised employees, including those at the “executive level,” he said.
Walcott said the company recorded an operational loss of some $32.5 million and that TSTT was “plagued with a perennial problem of high employee costs.” He said contrary to information in the public domain, of the $768 million dollar wage bill, payments to junior and senior staff comprised some 82.3 per cent of that bill.
He said added to that the company has a massive debt burden of some $1.8 billion and 40 per cent of that is related to the backpay settlements to junior and senior staff. Walcott said payment amounts to some $700 million.
Walcott also said this transformation of TSTT is vital for its survival.
Just one month ago, the T&T Guardian had reported exclusively that TSTT was planning this move as part of reshaping the company into the TSTT Group of Companies. However, the company then issued a vehement denial of that report, describing it as “fabricated” and “erroneous.”