Batelco Workers Shocked

[Bahamas News]

Batelco Workers Shocked
Perez Clarke
The Bahama Journal



Facing a new culture of competition and a realignment of a generous employment contract, workers of the Bahamas Telecommunications Company were shocked this week when management sent them a contract proposal that would reportedly slash employee benefits by 65 percent.

The union representing employees at the telephone company on Wednesday publicly rejected the proposal for a new industrial agreement, staging a demonstration outside the company’s headquarters on John F. Kennedy Drive.

President of the Bahamas Communications and Public Officers Union Robert Farquharson said his executive team submitted a proposal to BTC two months before the old contract expired in September.

He said BTC finally responded with a counter proposal that the union feels is unacceptable.

During the demonstration, Mr. Farquharson called the new proposal “a slap in the face”, saying it would slash the benefits employees currently enjoy by 65 percent.

“In this document management said to us that in the event of change of ownership that the entire industrial agreement becomes null and void,” he said. “This gives the new owners the right to implement any terms or conditions they desire.”

The demonstration came on the same day that Minister of State for Finance James Smith told the Bahama Journal that the government is still open to favourable bids for the purchase of 49 percent of BTC’s shares.

Minister Smith said BTC is positioning itself in the meantime to become a more competitive operation, while ensuring that its value is preserved.

He said this would involve the introduction of more technologies and better customer service.

The union feels that a new industrial agreement must provide adequate protection for its members even if new owners were to move in.

“They have taken back a number of benefits, including meal vouchers, Christmas bonuses, overtime pay, compassionate leave and maternity leave,” Mr. Farquharson said.

About 100 employees participated in the demonstration, circling the company and singing while marching.

Workers claimed that they will not compromise in their demands.

“The average person in this company doesn’t live off salaries alone,” one worker said during the lunchtime protest. “We live off the fringe benefits provided by our industrial agreement along with our salaries.”

The contract being proposed by management provides for a 2 percent salary increase for the first year; and two percent each year for the remaining two years of the agreement, which would be retroactive to October 1.

The proposal also says the company will maintain a merit pay plan that will grant awards to deserving employees who have achieved accomplishments that are beyond the normal, pre-established goals and targets set by the company for the performance management period.

The total funds available for merit awards would be based on the attainment of minimal levels of financial performance that will be set by the company.

The proposal says the determination of which employees receive merit increase will be made the company’s review board committee, which consists of executive management and a representative nominated by each union president.

Mr. Farquharson threw the proposal from management into a toilet bowl that was brought to BTC’s steps, as union members cheered on.

He claimed that BTC is in excellent financial condition and told management not to expect members of the BCPOU to sacrifice any current benefits.

No BTC official came out while the demonstration took place and management refused to return media calls on the matter.

Yesterday’s demonstration took place a day after the Bahamas Electrical Workers Union raised concerns about an industrial agreement it signed with management of the Bahamas Electricity Corporation in April.

One of the issues being raised by the BEWU is concerns over the merit pay system, which is now being included in most new employee contracts.

[Lindbergh Smith]

Life becomes very interesting when you examine the reason why people really do things that serve their purpose, knowing full well that for every action there are consequences. The question then becomes, are we willing to pay the price when we make a deal with the devil.

During the course of the privatization process the leaders of both unions had an opportunity to either embrace the process and encourage the sale of the company in order to preserve the rights and benefits now enjoyed by the members of both unions, instead they; having the privilege of sitting on the privatization committee commission choose to derail and not support the efforts to privatized the company. This was a golden opportunity for both Presidents to really promote good work ethics among its members and even more so an opportunity to ensure true empowerment for many of their members though having the opportunity to now negotiate within a new environment with people whom are well aware of the benefits and privileges that are enjoyed in first world countries. In fact one of the Unions president commended the Inclusion of The Deutsche Telekom group participation as being a part of the Blue team, as they had performed due diligence on this company and was very impressed by their track record with regard to their relationships with unions and their first world efforts to ensure respectful and innovative ways to ensure Union and management combine efforts to stimulate growth and real partnership within the Industry.

This would have provided the real opportunity to really deploy their union leadership skills. We're they afraid is the question? That they would have figured insignificant with new Management structure. Look what they have come to now.
"Putting toilet bowls on the front door of the company and declaring that the consultants; {whom could care less about what happens after they get paid their few million bucks and leave just like the others have} came as passengers and would go back as freight.

They perhaps won't mine going back as freight as long as they have their money with them who cares. Its still management the Board and the governments business to execute the advise. Unless you want to pay them a few million more dollars to do that as well." Its strange they are asking advise from people that have never ran a telecom company in their lives. These consulting entities by the way, which when hired, then seek person employed in other companies to come and offer advise on their behalf. The industry is such that no two environment are the same. These companies gather personnel from the US whom have never been exposed to an environment as unique as the Bahamas in its Island Topology which makes it very difficult to deliver the standard of services that exist world wide. Each Island existing as a separate country almost makes it very unique and difficult to deliver services. One has to adapt to such an environment and bring global experience with similar experiences. Most US persons do not have this.

During the process as a part of the proposal submitted to the Government BlueTel Networks indicated their acceptance of recognizing the Union in fact even agreeing that No Union employee employed to the date of the agreement; had the company been sold; would suffer the lost of their job. That the only affect personnel would be within the executive management ranks. The agreement also called for the acceptance of the then Union contract that was in place and was being enjoyed by the Members of both Unions and would not be altered but continue to remain in force for the period of the exclusivity that was a part of the sale process. This exclusivity period would have ended in 2006 had the company been sold, and the members enjoying their benefits without the 65 % reduction that they are now facing and the embarrassment and frustration that comes with the proposal from the Board members of BTC and the Executive Management team.
There would not have been a need for a new proposal. The one in place would have continue to be enforced with additional incentive packages included. e.g Packages for those wanting to leave similar to the packages offered by the former government. The company would have been obliged to comply as this is a part of the existing contract in the case of redundancies and or lay off of any employee. This was to ensure that no lost of job had the company been sold.


This is the same Board and Executive team whom the unions presidents acted with to derail and or provide a negative feedback to the Government with regards to the proposal put forward by the participants in the process and subsequent closing of the process. The commission was made up of 14 members of which 7 we're directly tied to BTC either by their position on the Board and or a present executive Management personnel. How can one then expect objective behavior within this commission body when 60 % of the members are directly tied to the company and enjoying the benefits of the institution at the top of the ladder with all the excessive perks that comes with the office e.g free car, free phone calls, free cell phones, expense accounts, huge travel expense accounts ,lavish board lunch and dinners etc.

As is said in the courts of the Bahamas, "Justice must seemed to have been" done" The questions for the unions is now, how would they seek increase in benefits when the company is in a competitive environment now with the introduction of Indigo and Cable Bahamas. I am well aware that the leadership of these Unions are very much in tune with the new telecom environment, and indeed do know much about what the future prospects are for the company going forward.

Never mine the present executive management of BTC hooray about what plans they have , they haven;t been able to execute any plans successfully for the past ten years. And if they we're so smart about where to take BTC into the future why didn't they formed a group like was done with BLueTel Networks Bahamas like I personally did, and pursued the Acquisition of the company themselves. They had all the resources to do this and they did not. WHY? because they were too busy just wanting a government job. They could make mistake and not be held accountable.

No one fires a government Employee and they know that. The Board members can get away with the screw ups and lost and not be held accountable. What makes any one believe they can get anything right in this company this time after 10 years or more. Maybe they need 20.

The infrastructure of BTC needs a complete overall and the truth is as they continuously fail to inform all of you the citizens of our great country is that they never will. The Infrastructure serves the basic minimum needs of the country ands thats at best.
For the Leadership of the unions to expect any more is totally unjust as it just does not exist. BTC financial which was tabled in the house of assembly by the Minister shows a decline of 26 % in revenues> And this was in 2003 when there was minimum erosion on the revenues, can you imagine the numbers for 2004 with all the VOIP and call back increasing as well as a now full licensed telecom provider with less than a 100 employees and a small operation whom can move faster and provide a higher quality of service than BTC. This new company has already successfully secured practically 75 % of the Business customers and banking Institutions on Bay Street. BTC reaction was to reduce their cost for International Long Distance ILD to counter this. What they don't know is that they can provide their service for practically free and these customers would still leave them. Its not the cost guys, it's the service, and the years and years of negative attitude towards business customers. people just want OUT! No matter what! and at any cost.


The leaders of both unions ought to be encouraging the sale of BTC and or the movement of the present Management team and work with a new company to develop a new entity that would provide its members, the country and its customers advanced communications products and service and encourage their members to stop acting like they are doing people a favor when they seek service, but because they love their customers and would go the extra, extra mile to make them happy with their expedient service.

[Rory]

Excellent information.

Yes, most people, or businesses with money, will pay more for better service. Batelco may be able to hold onto a large client database, who would be more interested in lower rates, but in the end, the large clients, who have large telco systems installed and pay higher rates, will eventually probably switch out to the new company with better service (that is if they really do have better service?), and that may, or may not, bankrupt the current batelco, and then they will never recover. They need to or need to have already, privatized, otherwise it will just end up the same way that Bahamas Air is right now. Good competition can bankrupt any monopoly.