[UPDATED] Industrial Court puts 400+ TSTT firings on hold

Communication Workers Union (CWU) head Clyde Elder says his union has secured an injuction from the Industrial Court to stop TSTT from retrenching workers represented by the CWU for 14 days.

Speaking on TV6 on Tuesday, Elder said the union was sent a letter along with a flashdrive containing retrenchment notices to 468 workers earlier that day.

"We realised that those notices were not in compliance with the laws of TT, not in compliance with the Retrenchment, Settlements and Benefits Act (RSBA), and not in compliance with what is expected of good and proper industrial relations. We approached the (Industrial) Court for a hearing, which started just after 5 pm, and we were able to get from the court a stay of the retrencment, and a date of June 14 for continuation of the hearing. And, until such time, the company is not to engage in any retrenchment of members of our bargaining units."

Elder said the notices were not in compliance with the law because workers were supposed to be given 45 days' notice of retrenchment, but they were told they would be retrenched immediately.

"The company tried to hide their illegality by paying workers 45 days in lieu of notice. Of course the act doesn't contemplate any payment in lieu of notice. Please note the collective agreement does make mention of it. And because the company did not comply with the provisions of the RSBA given in the notice to the union, we approached the court as the acts by the company were illegal and needed to be challenged and we were able to do that successfully this afternoon."

Elder said the issue of payments in lieu of notice did not come up during negotiations between the union and TSTT.

TSTT, on Tuesday, issued the retrenchment notices to 468 employees, some with almost immediate effect, saying this was needed for TSTT's survival.

"The fact is that if TSTT does not restructure, it will not survive," said the company, "and we believe that this restructuring will put us back on the path of sustainable profitability."

This came after Elder had earlier on Tuesday confirmed reports of the retrenchment of 376 staff represented by the CWU, about 28 security guards represented by the Estate Police Association (EPA), plus a number of managers and professionals.

Elder said some staff would be retrenched as of Wednesday, adding, "We are looking at it from all kinds of angles." The CWU will hold a protest march on Friday at 10 am in Port of Spain.

TSTT's statement said, "TSTT today initiated its restructuring exercise with 468 employees receiving retrenchment notices.

"Of this number, 403 employees, comprising a mix of junior and senior staff and estate police officers will, in keeping with the collective agreements with their representative unions, each receive payment in lieu of the regulatory 45 days’ notice."

TSTT said since February 1, it had held talks "in good faith" with the CWU and EPA on TSTT's restructuring. It denied the talks were a farce, with any predetermined outcome.

TSTT said its revenues had fallen by $453 million or 18 per cent in the fiscal year ending March 31, 2021. This was owing to the covid19 pandemic plus economic and technological factors in the TT market owing to the global digital revolution in telecommunications – including a falling price per gigabyte – which cut revenue growth and margins.

TSTT CEO Lisa Agard said the company had to align to industry benchmarks and evolve with new technologies, to return to profitability.

“Given our challenges, TSTT has no option but to restructure to remain competitive.

"The restructuring exercise is expected to result in a more efficient, customer-focused and modernised organisation."

The statement said TSTT's efforts at cost-cutting measures in the past 18-24 months could not counter lost traditional revenues and broadband margins blamed on new technology.

TSTT predicted a drop in existing single-product revenues owing to more bundling of the services for businesses and individuals.

The company lamented redundant copper technology and high personnel metrics.

It said during the 2018 retrenchment of 700 workers, TSTT hoped new income streams could mitigate a non-efficient total cost structure specifically "misaligned personnel performance metrics," but pandemic fallout now forced TSTT to address "the perennial non-alignment in its personnel cost structure" which exceeded some local and foreign telecommunications companies.

Elder alleged that TSTT had been deliberately run down to make room for Amplia to take over some of its functions, saying this would help union-busting. He alleged the retrenchment was done in line with a Government mandate. Elder complained retrenchment was unfair, saying even a possible $500,000 retrenchment payout could not adequately compensate a worker paying for a $1 million house, plus bills for his vehicle and children's university fees. He vowed to continue the fight.

Last January, TSTT summoned the CWU for talks on company restructuring, after a $453 million drop in revenue, blamed on the pandemic and rival technologies like WhatsApp and Zoom – plus the legacy costs of redundant technology.

Agard had said, “Given our current challenges, TSTT considers that it must now urgently restructure to remain competitive."

Elder had predicted, "Without saying that in so many words, it is clear they are going to further downsize and restructure and retrench employees at different levels of the company. We could very well see the decimation of the company as we know it, if we are not careful."

By February the Prime Minister had instructed Finance Minister Colm Imbert to accede to Elder's request to discuss auditing TSTT.

By March, Housing Minister Camille Robinson-Regis chaired a new Cabinet subcommittee examining the state of TSTT. She asked TSTT to stay its hand on retrenchment while the subcommittee made its inquiries but she later said the subcommittee may merely request this, but not order TSTT as it was not a state company.

On Tuesday, Newsday asked Robinson-Regis if the subcommittee's findings supported retrenchment, but she said it had not yet reported to Cabinet.

In a later text message, she explained the subcommittee's role.

"The committee was not part of TSTT’s operations and the details of its implementation of its restructuring plans.

"In fact, the Government’s position on TSTT’s restructuring exercise has always been clear, that is, that the matter of restructuring, including its shape, timing, and form, is a matter solely for the company and not for the Government. This is of course due to the legal ownership structure of TSTT."

She said TSTT was not a state enterprise and not under the Government's direct legal control.

"Accordingly, the subcommittee is not in any position to make any statement or comment on what has been reported as to the latest action by TSTT in its restructuring exercise."

"The sub-committee’s mandate is to advise the Cabinet with regard to the standing of TSTT and, inter alia, whether it is fit for purpose and its way forward in this changing telecommunications industry. Accordingly, in keeping with its remit, the committee continues with its deliberations and will make recommendations to the Government accordingly."

Newsday, in a text message, asked Agard when the remaining 65 workers would be retrenched (the difference between the 468 total and the 403 retrenched as of Wednesday). Newsday also asked the size of TSTT's remaining workforce, which departments staff were retrenched from, and whether these losses meant TSTT cease the provision of any of its services, but up to press time, got no reply.

Attempts to contact Agard for a response to the Industrial Court's decision to grant an injunction against the retrenchments were not successful.
(With reporting by PAULA LINDO)

This story was originally published with the title "CWU: TSTT retrenching 400" and has been adjusted to include additional details. See original post below.

TSTT has issued retrenchment notices with almost immediate effect to about 400 employees, Communication Workers Union (CWU) head Clyde Elder told Newsday on Tuesday.

He said notices were served on Tuesday to take effect from Wednesday, with TSTT to pay in lieu of giving notice.

Elder said retrenchment notices were served to 376 staff who were members of the bargaining unit, that is, represented by the CWU.

He said retrenchment notices had also been sent to about 28 security guards represented by the Estate Police Association.

Elder said he had heard of a list of names of managers and professionals also being retrenched.

TSTT later said in a release that a total of 468 notices had been issued.

Elder said the CWU will lead workers in a protest march on Friday at 10 am in Port of Spain from TSTT on Henry Street to the Red House.

TSTT was due to make a statement later on Tuesday.

Speculation has run rife since last January, when TSTT summoned the CWU for talks on company restructuring, after a $453 million (18 per cent) drop in revenue that last fiscal year, blamed on the covid19 pandemic and rival technologies like WhatsApp and Zoom – fallout set to persist into the future – plus the legacy costs of redundant technology.

TSTT CEO Lisa Agard said then, “Given our current challenges, TSTT considers that it must now urgently restructure to remain competitive."

Elder had predicted, "Without saying that in so many words, it is clear they are going to further downsize and restructure and retrench employees at different levels of the company. We could very well see the decimation of the company as we know it, if we are not careful."

In February the Prime Minister instructed Finance Minister Colm Imbert to accede to Elder's request to meet to discuss a proposed audit of TSTT.

By March, Energy Minister Stuart Young announced a Cabinet subcommittee under then Planning Minister Camille Robinson-Regis to examine the state of TSTT. She asked TSTT to stay its hand while the subcommittee made its inquiries, but later said the subcommittee may merely request this of TSTT, but not order it, as it was not a state company and not directly controlled by the Government.