TSTT will borrow to finance the restructuring | Local company
MAJORITY Public telecoms provider TSTT said yesterday it would secure capital markets funding to cover the separation costs of its proposed restructuring exercise. In a statement released yesterday, the company said it planned to fund the cost of the separation without the need for a government guarantee.
In the statement, TSTT said that, if taken into account, the expected high cost of the proposed restructuring would be easily offset by savings in personnel costs.
“The elimination of maintenance costs associated with obsolete facilities and technology and revenue from new business streams, which will partially offset the loss of revenue from voice, local and international calling services,” the statement said.
TSTT has previously said the proposed restructuring was necessitated by several factors, including economic conditions caused by the Covid-19 pandemic; increased adoption of digital applications by consumers; and the continuing industry-wide trend of substituting low-margin data services for voice services.
“These and other factors continue to have a crippling impact on the business and its results, with TSTT’s revenue falling $453 million in the last fiscal year ended March 31, 2021, or 18% less than the previous year.
TSTT said it has implemented various initiatives to counter these debilitating conditions, including reducing non-staff costs in response to these trends.
Notwithstanding these attempts, given the current challenges, the company said it believed that to survive and return to profitability eventually, it had no choice but to restructure its operations, and made its proposals known. in this regard to its employees and their representative unions.
Imbert to meet the parties
Last week on Friday, Communications Workers Union (CWU) General Secretary Clyde Elder delivered a letter to the Prime Minister’s Office calling for an urgent forensic audit of TSTT’s operations, following the announcement of a new restructuring exercise.
Yesterday afternoon the union received correspondence from the Permanent Secretary to the Prime Minister and Head of Civil Service Maurice Suite which said Dr Keith Rowley had directed the Finance Minister to meet with TSTT and CWU over the matter.
The real estate police in the dark
As the restructuring process begins to streamline, State Police Association (EPA) President Derek Richardson said his 36 officers who provide security at the company’s offices do not yet know if they will be on the bread line.
Richardson told the Express yesterday that he met virtually with TSTT’s human resources manager on Tuesday and asked how many officers would be released. She indicated that it would soon be sent in the document.
“In the afternoon, the EPA received the documents, but it was not specified how many officers would be affected. I find this very alarming and have since replied to the head of human resources to ask an urgent meeting in order to clarify the missing pieces, which made the officers very anxious,” Richardson explained.
He said when 503 juniors and staff were released in 2018, estate agents were spared as they negotiated with TSTT to get agents to take a pay cut in exchange for keeping their jobs.
“Now we don’t know what’s going on and the officers are asking us for answers, which is expected. So if the state majority does not respond to our first letter asking for another meeting, we will write another letter. Just as the CWU knows their numbers, so should we,” Richardson remarked.
CWU General Secretary Clyde Elder has written to Independent Senator Anthony Vieira, in his capacity as Chairman of the Enterprises Committee, to request that the Joint Joint Committee launch an urgent investigation into the operations of TSTT.
In the letter, the union pointed out that TSTT embarked on a restructuring exercise in 2018 that resulted in more than 500 workers being sent home.
“At that time, TSTT had invested approximately $3.7 billion in the restructuring exercise. Following this exercise, the then Minister of Public Services assured that no one else would lose their jobs since the business was profitable again, however, another release of more than 400 workers is expected to take place next month,” the letter said.
The CWU further claimed in the letter that wanton waste and corruption had taken place and continued to take place at TSTT.