TSTT HANGS UP ON WORKERS

STATE telecoms company TSTT has retrenched 51 workers – just two weeks before Christmas and less than a month after chopping almost a third of its workforce, by sending home 503 employees.

Workers received letters of retrenchment yesterday with at least one worker given December 25 – Christmas Day – as the final day of employment.

In a release, the company added that, via an out-of-court settlement, 77 workers eligible for voluntary separation packages (VSEP) offered in 2014 were "facilitated" and allowed to resign. These employees were previously denied their request for separation as a result of an injunction lodged at the Industrial Court.

TSTT said the cuts would result in annual savings of $207 million, bringing it in line with employee benchmark costs, or 15 per cent of revenue. Before the cuts, it was 30 per cent.

On November 16, TSTT announced it would slash some 503 junior and senior members of staff, most of whom were members of the majority union, the Communications Workers Union (CWU). Workers in this week's cull are all non-unionised and many were in senior management positions.

EVPs AMONG

THOSE CULLED

Newsday obtained a partial list of the 80 proposed managerial positions that were to be cut, including executive vice president (EVP) for human resources, industrial relations and corporate support services; EVP for strategic, enterprise and Tobago operations and; senior manager for public relations and external communications. Newsday was also told while positions would be made redundant, some of the personnel might be retained.

Carol David, who oversaw the retrenchment of the 503, is EVP for human resources, and while that position is one of those eliminated, Newsday was told she will be shifted to a new position – general manager of shared services.

Rakesh Goswami, the EVP for strategy, declined to comment when contacted, instead referring all questions to TSTT's corporate communications unit. Newsday sent queries but up to press time, did not get a response. Graeme Suite, senior manager for public relations, was retrenched but when contacted declined to comment.

The company said it "envisages" no salary increases for 2014-2018. The cost-cutting, one of the measures the company claims will make it more efficient, will allow TSTT to increase its revenue earnings from US$177,000 per worker to earnings more in line with the industry trend of US$400,000 per worker.

During the first tranche of cuts, the company justified its decision in the context of profitability. Last year it recorded an operating loss of $32.5 million and in the first six months of the current financial year, it recorded a $478.8 million loss. TSTT’s financial year runs from April to March.

WAGE BILL

IS $768M

Its annual wage bill is $768 million, of which emoluments to junior and senior staff comprise 82.3 per cent. The company is also carrying a debt burden of $1.8 billion, of which 40 per cent (or about $700 million) pertains to settlement of backpay to junior and senior staff.

TSTT CEO Dr Ronald Walcott said in the release that this “organisational transformation" is an absolute necessity for TSTT’s survival.

"We had to make these very difficult decisions to ensure that TSTT continues to fulfil its mandate to provide ubiquitous and affordable leading-edge solutions for the people of TT,” he said.

He said "digital disruptors" were affecting operations and profitability throughout the industry, and companies around the world were transforming their business models, and TSTT was no different.

"We have been forced to reconfigure the business to become an agile broadband communications company in order to compete in the telecom space. We have a thorough understanding of our competitive advantage and the path towards sustained profitability, while ensuring an adequate return on investment for our shareholders,” he said.

He said the company's focus was on "enhanced customer service," including the continued roll-out of new technology, such as 4G LTE for mobile and residential services and, subject to regulatory approval, it is ready to deploy next generation 5G technology in 2019.