Less than a month after Digicel entered a debt restructuring plan, the company has announced plans to lay off 126 employees based in Trinidad and Tobago.
In a release yesterday, Digicel said the layoffs are a result of a planned transition of its Trinidad consumer contact centre to a consolidated regional centre of excellence in Jamaica.
The company also announced that its Regional Corporate Contact Centre will be consolidated as well, into a centre based in Trinidad and Tobago.
The news was announced to staff yesterday.
Digicel CEO, Abraham Smith told Guardian Media, “Digicel continues to be in ongoing discussions with employees and has hosted several town halls to ensure that everyone is part of the business’ transformation. Human resources has also personally and individually spoken with each affected employee about their unique situation. We will continue to meet with folks over the coming weeks about their severance benefits, as well as ensure that they are prepared to interview with the various companies who we are working with for placements.”
Smith acknowledged the company’s struggles had a part to play in the retrenchment.
He said: “It’s no secret that we are facing some unprecedented challenges in our industry due to the global pandemic, increased competition, forex challenges and changing customer preferences.
“These challenges have led to us making some decisions to ensure the sustainability of our business.
“One such decision across Digicel Group, is the movement of various functions from isolated markets into regional centres of excellence to strengthen the company and improve operational efficiency. The regional contact centre for business customers is in Trinidad and Tobago, the regional digital live chat management centre is in Haiti and now, the regional consumer contact centre is Jamaica.”
He closed, “While this decision was not an easy one, we firmly believe that this move will benefit our customers and the company in the long-run as this consolidation will streamline our operations and reduce costs, which will ultimately help us to continue to be a competitive and sustainable business.”
The company said it has reached out to several third-party customer contact-centre operators in a bid to have affected employees possibly obtain jobs there.
Elder wants ministry to intervene
Communications Workers Union Secretary General Clyde Elder said while his union does not represent workers at Digicel, he questioned the manner of the retrenchment and called on the Ministry of Labour to intervene.
Elder said: “Firstly, the manner in which workers were informed, that is, via Microsoft Teams is appalling. Secondly, under the law, workers are entitled to a notice period of 45 days. During this period there must be meaningful consultation with the workers, attempts to redeploy them within the company or even for the workers to seek the intervention of the Minister of Labour.
“There is no provision in law for payment in lieu of notice for that 45-day period, since there is a purpose for the notice period.”
Elder noted that the Digicel jobs are being sent to an outsource agency, which demonstrates that the jobs are still necessary.
However, said Elder, Digicel has deemed the workers to be redundant. This means the retrenchment “appears to be effected in an illegal manner,” Eder said.
At the end of February Digicel owner Denis O’Brien entered into a debt restructuring programme meant to reduce the company’s total debt by $1.8 billion and place Digicel on a sustainable footing following severe losses incurred in recent years.