(Trinidad Express) Public Utilities Minister Marvin Gonzales said yesterday that the very survival of majority State-owned Telecommunications Services of Trinidad and Tobago (TSTT) depends on the company taking difficult decisions, including retrenching 468 of its employees.
Gonzales was responding to the decision by TSTT to issue 468 of its employees with retrenchment notices on Tuesday. Of those employees, 403 are unionised workers who are entitled to receive payment in lieu of the statutory 45-day notice period, in keeping with their collective agreements.
The Industrial Court on Tuesday night in effect halted TSTT’s execution of retrenchment notices on the 376 employees represented by the Communications Workers Union (CWU).
TSTT had sent retrenchment notices to 44 per cent of its workforce before the start of the restructuring exercise. If the exercise is fully implemented, the company’s actual headcount would decline from 1,057 employees before the restructuring to 589 after the process.
In comments to the Express, Gonzales pointed out that if TSTT does not take difficult decisions now, it will not be able to continue in business.
“It’s a known fact that because of the impact of the global pandemic and the changing telecommunications environment, TSTT has lost hundreds of millions of dollars over the last two to three years,” said Gonzales.
He added: “The company is now forced to make decisions if it wants to survive in a fast-paced environment. If it doesn’t make these decisions to become fit for purpose and embrace new technologies, it will have no choice but to close its doors.
“Therefore, the board and management have taken a decision to restructure the company in order that it remains a going concern for its shareholders.”
Gonzales added: “I know it is a very stressful and difficult time for the employees and others who may be impacted, but given the information I have as minister, I believe that the board and management must do what must be done to keep the TSTT ship sailing.”
TSTT has two shareholders: 51 per cent is held by National Enterprises Ltd, a State investment holding company, and 49 per cent by Liberty Latin, which is the parent company to Flow and Cable & Wireless, and is a part of the telecom giant Liberty Global.
Huge decline in revenue
In its news release on Tuesday, TSTT noted that in the financial year ending March 31, 2021, its revenue fell by $453 million, or 18 per cent less than its 2020 financial year.
TSTT said the decline in revenue was partly due to issues related to the Covid-19 pandemic and a combination of economic and technological factors unique to T&T, driven by the global digital revolution in telecommunications.
The retrenched employees are a combination of junior and senior staff and estate police officers.
On Tuesday, in the TSTT news release, the company’s chief executive, Lisa Agard, said: “Given our challenges, TSTT has no option but to restructure to remain competitive. We are moving to an operating model that is more in line with industry benchmarks, and one that will enable us to adapt and evolve with the constant developments in technology. This is our only option if we are to return to sustainable profitability.”
