House approves BTC sale
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com
PM accidentally voted against sale, then changed vote
The Bahamas Telecommunications Company (BTC) privatization resolutions were passed in the House of Assembly yesterday with 22 MPs voting in support of the resolutions and 18 voting against. The process to sell 51 percent of BTC to Cable and Wireless Communications (CWC) is now almost finished.
All members of the official opposition voted against the resolutions. Independent MP for Bamboo Town Branville McCartney also voted against the resolutions.
Prime Minister Hubert Ingraham initially made a mistake and he accidentally voted against the first privatization resolution. He was seemingly distracted, using his Blackberry phone, when his name was called to vote. Ingraham said, “No.”
When he realized the mistake, Ingraham quickly said, “Yes.”
His initial “no” vote led to loud cheers and laughter from opposition members.
When it came time to vote on the second resolution, Ingraham clearly said, “Yes.” This also led to laughter from the opposition, considering Ingraham’s initial mistake.
Both resolutions passed shortly after Ingraham wrapped up the debate yesterday evening.
“This is a historic day in the history of The Bahamas,” Ingraham said. “It is the culmination of a process that was started 14 years ago.”
In negotiating the BTC deal, he said the government was motivated by its desire to give Bahamians the best of what is available and to ensure that communications services are reliable and accessible.
Ingraham also accused the opposition of using the unions representing BTC employees as “pawns” in the fight against of sale of BTC to CWC.
Ingraham further criticized the leaders of the Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) — the BTC unions — for leading their members down “the wrong path.”
The unions have led protests and legal action seeking to block the sale to CWC.
Progressive Liberal Party (PLP) MP for Fort Charlotte Alfred Sears took offense to Ingraham’s “pawns” statement. He said the unions are mature groups with responsible leaders who can make independent decisions.
The BCPOU and BCPMU were seeking an injunction to stop the government from selling BTC.
However, Supreme Court Justice Neville Adderley said the unions lacked the legal capacity to institute and maintain the action in their own names.
The unions appealed the decision, but lost that bid before the Court of Appeal Tuesday.
The unions will face significant legal bills as a result of the failed court action.
Ingraham encouraged the unions to engage with CWC.
“I appeal to the leadership, to the unions, to begin to engage in discussions with their new bosses. Because they are going to be the bosses in short order and it makes good sense for them to have discussions,” he said. “Do not allow anyone to mislead you into believing that we do not have your best interests at heart. In fact, had they listened to me they wouldn’t have been stuck with the thousands of dollars in court fees.”
The legislation associated with the BTC sale will next be debated in the Senate.
3/25/2011
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Showing posts with label BCPOU Bahamas. Show all posts
Showing posts with label BCPOU Bahamas. Show all posts
Saturday, March 26, 2011
Tuesday, February 15, 2011
BTC unions lose court battle to block the sale of 51 % stake in Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC)... [Ordered to pay costs]
BTC unions lose court battle
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Supreme Court Justice Neville Adderley yesterday threw out a court action filed by Bahamas Telecommunications Company unions seeking to block the sale of a 51 percent stake in BTC to Cable and Wireless Communications (CWC).
The Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) were seeking an injunction to stop the government from selling BTC.
Attorney Maurice Glinton, who represented the unions, confirmed to The Nassau Guardian that they plan to appeal the decision. He could not say at the time when the necessary documents would be filed.
In his ruling, Adderley said the BCPOU and BCPMU and their trustees lacked the legal capacity to institute and maintain the action in their own names.
“Hence the action is a nullity and so the granting of an injunction pending its hearing does not arise,” Adderley said.
“Alternatively, the evidence has not disclosed that any of their private legal rights are being infringed or threatened or need to be enforced or declared, as they have not established an interest recognized by law as being direct and substantial enough in the subject matter of the action to give them locus standi to commence the action to claim the remedies set forth in the writ.
“For the foregoing reasons, I strike out the writ and dismiss the action.”
Adderley also ordered that the unions pay costs in the matter.
In their writ, the unions contended that the government has no authority to sell BTC because an act of Parliament made the Bahamas Telecommunications Corporation (BaTelCo) a self-owning and self-sustaining entity.
Their claim is that consequently the divested assets are now held by BTC in trust for BaTelCo.
Adderley said there is no express power in the Industrial Relations Act that gives unions the capacity or power to sue for declarations outside their statutory objects.
Adderley said even if they had the capacity to sue for the matters in question, he considered whether they had a legal interest to sue for the relief claimed.
Last week, the government signed a shareholder’s agreement and a share purchase agreement with CWC, and Prime Minister Hubert Ingraham tabled the memorandum of understanding between the two entities in the House of Assembly along with related documents.
Yesterday, BCPOU President Bernard Evans said the ruling has in no way halted the union’s efforts to stop the sale of BTC.
“We never really rested all of our efforts on this court case, even though we knew we had good grounds and it is a landmark case. But we never wanted to leave any stone unturned. We will continue to do our stuff because this is not over by a long shot,” Evans said.
“We are going to fight this on all fronts. Whatever it takes, we are going to take our time and get to it.”
Evans shot down claims by the Free National Movement that the majority of Bahamians support the sale of BTC to Cable and Wireless.
“I saw in the paper where the FNM government believe that they have the majority of the people, they keep putting us in the minority. Well the day of reckoning is coming when we will know who has the majority,” Evans said.
The deal between the government and CWC calls for the shares to be sold for $210 million, as well as a stamp duty of $7 million. Eventually, 25 percent of the shares in the company will be offered to Bahamians, the government has said.
2/15/2011
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Supreme Court Justice Neville Adderley yesterday threw out a court action filed by Bahamas Telecommunications Company unions seeking to block the sale of a 51 percent stake in BTC to Cable and Wireless Communications (CWC).
The Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) were seeking an injunction to stop the government from selling BTC.
Attorney Maurice Glinton, who represented the unions, confirmed to The Nassau Guardian that they plan to appeal the decision. He could not say at the time when the necessary documents would be filed.
In his ruling, Adderley said the BCPOU and BCPMU and their trustees lacked the legal capacity to institute and maintain the action in their own names.
“Hence the action is a nullity and so the granting of an injunction pending its hearing does not arise,” Adderley said.
“Alternatively, the evidence has not disclosed that any of their private legal rights are being infringed or threatened or need to be enforced or declared, as they have not established an interest recognized by law as being direct and substantial enough in the subject matter of the action to give them locus standi to commence the action to claim the remedies set forth in the writ.
“For the foregoing reasons, I strike out the writ and dismiss the action.”
Adderley also ordered that the unions pay costs in the matter.
In their writ, the unions contended that the government has no authority to sell BTC because an act of Parliament made the Bahamas Telecommunications Corporation (BaTelCo) a self-owning and self-sustaining entity.
Their claim is that consequently the divested assets are now held by BTC in trust for BaTelCo.
Adderley said there is no express power in the Industrial Relations Act that gives unions the capacity or power to sue for declarations outside their statutory objects.
Adderley said even if they had the capacity to sue for the matters in question, he considered whether they had a legal interest to sue for the relief claimed.
Last week, the government signed a shareholder’s agreement and a share purchase agreement with CWC, and Prime Minister Hubert Ingraham tabled the memorandum of understanding between the two entities in the House of Assembly along with related documents.
Yesterday, BCPOU President Bernard Evans said the ruling has in no way halted the union’s efforts to stop the sale of BTC.
“We never really rested all of our efforts on this court case, even though we knew we had good grounds and it is a landmark case. But we never wanted to leave any stone unturned. We will continue to do our stuff because this is not over by a long shot,” Evans said.
“We are going to fight this on all fronts. Whatever it takes, we are going to take our time and get to it.”
Evans shot down claims by the Free National Movement that the majority of Bahamians support the sale of BTC to Cable and Wireless.
“I saw in the paper where the FNM government believe that they have the majority of the people, they keep putting us in the minority. Well the day of reckoning is coming when we will know who has the majority,” Evans said.
The deal between the government and CWC calls for the shares to be sold for $210 million, as well as a stamp duty of $7 million. Eventually, 25 percent of the shares in the company will be offered to Bahamians, the government has said.
2/15/2011
thenassauguardian
Thursday, February 10, 2011
Dion Foulkes - Minister of Labour accuses BCPOU President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy of The Bahamas
Unions promoting 'social unrest'
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Labour minister hits out over 'small Egypt' comment
Minister of Labour Dion Foulkes has accused Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy.
It came after Evans on Tuesday threatened to turn The Bahamas into a “small Egypt” as a result of the government signing a deal with Cable and Wireless Communications (CWC) to purchase a majority interest in the Bahamas Telecommunications Company.
“The security of thousands of Bahamian jobs depends on political and social stability,” Foulkes said in a statement released by the Free National Movement Communication Unit.
The labor minister urged Evans to withdraw his “offensive comment and apologize to the Bahamian people.”
But Evans said yesterday, “I will do no such thing.
“What I said was those persons in Egypt who rose up against oppression, against a dictatorial type of governance, were very peaceful in the beginning when they started. It was only [in] the latter days when the armed forces and/or proponents of (Egyptian President Hosni) Mubarak started to [have] confrontations with those persons that it became out of hand.”
On Tuesday, as he stood on the steps of the Churchill Building, Evans warned of industrial action.
“I see now the police are putting up barricades again as if they are preparing for animals, but the will of the people is the strength of the people,” he said at the time.
“I guess if The Bahamas is ready and if the government is ready to see a small Egypt, then they are going to get it.”
Yesterday, Evans added that by nature, Bahamians are very peaceful people.
“I have always been very cordial and very peaceful, so I don’t know why the minister would want to insinuate that we are trying to wreak havoc on the community or on this nation. Nothing could be further from the truth,” Evans said.
Blasting the “small Egypt” comment, Foulkes noted that many people were killed and hundreds injured in Egypt in recent weeks.
“To urge members of the BCPOU to engage in similar behavior in The Bahamas is unbecoming of a union leader,” he said.
Evans — who has been threatening industrial unrest for weeks — went a step further on Tuesday, apologizing to the Bahamian public for the disruption in services he said will come.
2/10/2011
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Labour minister hits out over 'small Egypt' comment
Minister of Labour Dion Foulkes has accused Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy.
It came after Evans on Tuesday threatened to turn The Bahamas into a “small Egypt” as a result of the government signing a deal with Cable and Wireless Communications (CWC) to purchase a majority interest in the Bahamas Telecommunications Company.
“The security of thousands of Bahamian jobs depends on political and social stability,” Foulkes said in a statement released by the Free National Movement Communication Unit.
The labor minister urged Evans to withdraw his “offensive comment and apologize to the Bahamian people.”
But Evans said yesterday, “I will do no such thing.
“What I said was those persons in Egypt who rose up against oppression, against a dictatorial type of governance, were very peaceful in the beginning when they started. It was only [in] the latter days when the armed forces and/or proponents of (Egyptian President Hosni) Mubarak started to [have] confrontations with those persons that it became out of hand.”
On Tuesday, as he stood on the steps of the Churchill Building, Evans warned of industrial action.
“I see now the police are putting up barricades again as if they are preparing for animals, but the will of the people is the strength of the people,” he said at the time.
“I guess if The Bahamas is ready and if the government is ready to see a small Egypt, then they are going to get it.”
Yesterday, Evans added that by nature, Bahamians are very peaceful people.
“I have always been very cordial and very peaceful, so I don’t know why the minister would want to insinuate that we are trying to wreak havoc on the community or on this nation. Nothing could be further from the truth,” Evans said.
Blasting the “small Egypt” comment, Foulkes noted that many people were killed and hundreds injured in Egypt in recent weeks.
“To urge members of the BCPOU to engage in similar behavior in The Bahamas is unbecoming of a union leader,” he said.
Evans — who has been threatening industrial unrest for weeks — went a step further on Tuesday, apologizing to the Bahamian public for the disruption in services he said will come.
2/10/2011
thenassauguardian
Wednesday, February 9, 2011
After Bahamas Communications and Public Officers Union (BCPOU) president Bernard Evans would have destroyed The Bahamas, what does he plan to salvage from the ruins to pass on to his children?
Union leader promises a 'small Egypt'
tribune242 editorial
YESTERDAY the Government laid on the table of the House the much anticipated agreement to sell 51 per cent of Bahamas Telecommunications Company to Cable and Wireless Communications. The transaction is still subject to parliamentary and regulatory approvals.
Opposition leader Perry Christie quickly announced that his party will not support the sale. He said the Opposition was particularly "grieved that even though the decision was made to sell, the decision was made to sell 51 per cent." To him that was "an error of judgment on the part of this government and certainly does not serve the best interests of the people of the Bahamas."
We know that Mr Christie, a lawyer, probably does not have much practical experience in the business world, but when a purchaser is so hobbled in a sale -- as is Cable & Wireless -- the vendor has to relinquish something to keep him interested in the purchase. An early snag in the negotiations was C&W's need to slash 30 per cent of BTC's 1,150 work force to put the company in a position to compete in an open market. Obviously, Mr Ingraham, fighting desperately to save BTC jobs and making it clear that his government would not tolerate any forced redundancies, had to somehow "sweeten the pie" to keep C&W at the negotiating table. Many benefits, such as very generous pensions among other perks, had to be protected for current staff.
We presume 51 per cent and the three year period of exclusivity for its cellular service had to be the bait to clinch the deal.
And yet BTC employees are screaming that government is not thinking of the Bahamian people. Maybe they have a point there. An argument can be made that in his effort to protect BTC staff, he did indeed defer many of the benefits that the Bahamian people want now for another three years. This is to protect BTC staff and give them time to decide their future.
If this had been an ordinary sale -- or even if BTC workers had become the owners of the company -- reality would have set in very quickly. They would have become business men and women overnight, and about 300 staff would have had to have been made redundant immediately for the overburdened company to survive.
We presume that 51 per cent was the price that government had to pay to protect the jobs of many ungrateful staff.
Denise Wilson, BCPOU secretary general, declared that even though some Bahamians might not understand why unions are continuing to fight the sale, "it comes down to our rights." We understand only too well why they are fighting, they are not thinking of the country, or the Bahamians who pay their salaries, their focus is solely on themselves.
As for BCPOU president Bernard Evans, despite wanting us to believe that unionists are fighting the sale for the sake of future generations, he has vowed to turn this country into a "small Egypt." Those of us who have watched television these past two weeks know exactly what that means -- destruction. And after he has destroyed the nation, what does he plan to salvage from the ruins to pass on to his children?
He talks about showing the strength of the people.
Mr Evans is fooling himself if he thinks his minority, now trying to hold the government hostage, represents the will of the majority of Bahamians.
"I want to apologise right now publicly to all of our valued customers," said Mr Evans. "Be patient with us, but needless to say that services will be affected somewhat. Be patient with us, we are fighting for a cause we believe, we know, is bigger than BTC's members and employees. We are fighting for the future of our children."
Mr Evans forgets that Bahamians have been patient will their performance for too long now. The patience of most of us has run out.
Either the Bahamas is going to forge ahead for the sake of our children, or it is going to be held back in the cesspool of inefficiency.
After Mr Evans has turned us into another Egypt and jeopardised the jobs of all Bahamians, there won't be much left for another generation.
Nor have we any patience with an unreasonable people who reject an invitation to at least sit down and have a discussion with the Prime Minister.
What should be remembered is that Prime Minister Ingraham is the elected representative of the Bahamian people, not Mr Evans or union leaders.
February 09, 2011
tribune242 editorial
tribune242 editorial
YESTERDAY the Government laid on the table of the House the much anticipated agreement to sell 51 per cent of Bahamas Telecommunications Company to Cable and Wireless Communications. The transaction is still subject to parliamentary and regulatory approvals.
Opposition leader Perry Christie quickly announced that his party will not support the sale. He said the Opposition was particularly "grieved that even though the decision was made to sell, the decision was made to sell 51 per cent." To him that was "an error of judgment on the part of this government and certainly does not serve the best interests of the people of the Bahamas."
We know that Mr Christie, a lawyer, probably does not have much practical experience in the business world, but when a purchaser is so hobbled in a sale -- as is Cable & Wireless -- the vendor has to relinquish something to keep him interested in the purchase. An early snag in the negotiations was C&W's need to slash 30 per cent of BTC's 1,150 work force to put the company in a position to compete in an open market. Obviously, Mr Ingraham, fighting desperately to save BTC jobs and making it clear that his government would not tolerate any forced redundancies, had to somehow "sweeten the pie" to keep C&W at the negotiating table. Many benefits, such as very generous pensions among other perks, had to be protected for current staff.
We presume 51 per cent and the three year period of exclusivity for its cellular service had to be the bait to clinch the deal.
And yet BTC employees are screaming that government is not thinking of the Bahamian people. Maybe they have a point there. An argument can be made that in his effort to protect BTC staff, he did indeed defer many of the benefits that the Bahamian people want now for another three years. This is to protect BTC staff and give them time to decide their future.
If this had been an ordinary sale -- or even if BTC workers had become the owners of the company -- reality would have set in very quickly. They would have become business men and women overnight, and about 300 staff would have had to have been made redundant immediately for the overburdened company to survive.
We presume that 51 per cent was the price that government had to pay to protect the jobs of many ungrateful staff.
Denise Wilson, BCPOU secretary general, declared that even though some Bahamians might not understand why unions are continuing to fight the sale, "it comes down to our rights." We understand only too well why they are fighting, they are not thinking of the country, or the Bahamians who pay their salaries, their focus is solely on themselves.
As for BCPOU president Bernard Evans, despite wanting us to believe that unionists are fighting the sale for the sake of future generations, he has vowed to turn this country into a "small Egypt." Those of us who have watched television these past two weeks know exactly what that means -- destruction. And after he has destroyed the nation, what does he plan to salvage from the ruins to pass on to his children?
He talks about showing the strength of the people.
Mr Evans is fooling himself if he thinks his minority, now trying to hold the government hostage, represents the will of the majority of Bahamians.
"I want to apologise right now publicly to all of our valued customers," said Mr Evans. "Be patient with us, but needless to say that services will be affected somewhat. Be patient with us, we are fighting for a cause we believe, we know, is bigger than BTC's members and employees. We are fighting for the future of our children."
Mr Evans forgets that Bahamians have been patient will their performance for too long now. The patience of most of us has run out.
Either the Bahamas is going to forge ahead for the sake of our children, or it is going to be held back in the cesspool of inefficiency.
After Mr Evans has turned us into another Egypt and jeopardised the jobs of all Bahamians, there won't be much left for another generation.
Nor have we any patience with an unreasonable people who reject an invitation to at least sit down and have a discussion with the Prime Minister.
What should be remembered is that Prime Minister Ingraham is the elected representative of the Bahamian people, not Mr Evans or union leaders.
February 09, 2011
tribune242 editorial
Sunday, January 16, 2011
Bahamas Telecommunications Company (BTC) Privatisation: 1999 to 2011
Privatisation of BTC: from 1999 to 2011
By LARRY SMITH
"What I've found out about change is that when you propose it
people don't want it, when you are doing it it's hell, and afterwards
they think it's always been like that."
- former British Prime Minister Tony Blair.
IN EARLY 2008, about 10 months after the last general election, the Ingraham government appointed a new privatisation committee (headed by bankers T. B. Donaldson and Julian Francis), with a mandate to find a buyer for the Bahamas Telecommunications Company as soon as possible.
This was a goal that had been pursued ever since the FNM first came to power in 1992. In fact, even before then the Pindling regime had been seeking to divest state assets that were draining the treasury. By the early 90s the PLP had decided to offload government-owned hotels. And believe it or not, they also had confidential talks with Cable & Wireless about a stake in BaTelCo.
Privatisation continued to be pursued by the PLP during its most recent term in office, from 2002 to 2007. Although the Christie administration eventually cancelled the auction launched by the FNM, they went on to start their own process, and agreed (just before the 2007 election) to sell BTC to Bluewater Ventures, a foreign firm with an uncertain ownership and no operating history.
But the incoming FNM government could find no evidence that a deal had been finalised, although Bluewater - in the shape of American executive John Gregg and PLP politico/lawyer Brave Davis - insisted that the Christie cabinet had shaken hands on an agreement. In mid-2008, the Ingraham administration relaunched the privatisation process, eventually paying Bluewater $1.9 million to cover its out-of-pocket costs.
THE FIRST PRIVATISATION
This was surely a damnable waste of money, but the reasoning behind it was clear. The policy had always been to sell a stake in BTC to a major strategic partner - a company with the technical expertise, operating record, and bulk purchasing power needed to take the corporation to another level. There was no interest in selling to someone who merely had the financial capacity to buy.
In 1999, during the first privatisation exercise, Prime Minister Hubert Ingraham said that if the government simply transferred ownership of BTC to its employees, the corporation would go out of business as soon as it faced real competition. A strategic partner, he said, would enable BTC to compete and move forward in a transformed market.
"We seek to privatise BTC in the national interest," Ingraham said a decade ago, "and we have sought a phased approach to ensure minimal disruption." More recently he said: "We told Bahamians from day one that it was not possible to continue to have a monopoly in the telephone business and we established policies to prepare ourselves. There are hundreds and hundreds of people employed in the telecoms sector who were not so employed before we began to liberalise the market."
Before the government began downsizing BaTelCo in the mid-90s, the corporation had accumulated a workforce of 2100 to accomplish what experts said should require only a few hundred. And this padded payroll was clearly reflected in BaTelCo's dismal performance up to that point.
In 1992 the corporation's revenue was $120.3 million, with a net loss of $1.8 million that year. But after a 50 per cent reduction in staff (based on generous separation packages), BaTelCo's 2001 revenue was $226.4 million, producing a net profit of $57.3 million - almost as much as the corporation had earned over 10 years from 1982 to 1992.
THE CURRENT PROCESS
In 2008, the government appointed an advisory committee to oversee the new BTC sale process, under the chairmanship of State Finance Minister Zhivago Laing. This group would formulate the final recommendations to cabinet from information presented by the privatisation committee (headed by Donaldson and Francis). The leaders of both BTC unions were full members of the advisory committee.
The advisory committee authorised a new BTC auction in mid-2009, with the publication of a notice inviting bidders to register. Qualified parties were asked for technical proposals, and the best of these were invited to submit financial bids. The privatisation committee reviewed the bids and passed them on to the advisory committee for evaluation.
At the same time, major changes to the regulatory environment were being pursued to support market liberalisation. These included legislation to set up a new Utilities Regulation and Competition Authority to govern both broadcasting and telecommunications. In short, the government was totally reforming our antiquated communications laws.
According to the April 29, 2009 minutes of the advisory committee, Minister Laing said the new legislation was the result of "a vast amount of work and represented a new era for the Bahamas" that would bring clarity to what could, and could not, be done in the telecoms industry.
UNION ISSUES
At the July 13, 2009 meeting of the advisory committee, Minister Earl Deveaux recalled that during the first privatisation exercise, BTC workers rejected the decision and responded "in a way that brought great distress to the nation." He asked the union leaders for assurances that this would not be repeated. The BCPMU is the middle managers union. The BCPOU is the line staff union.
At that meeting BCPMU president William Carroll said the major issue for the unions in 1999 had been the separation packages, and that was why workers demonstrated. He added that treatment of staff should be one of the determinants for a successful bid, but went on to acknowledge that BTC employees now accepted the fact of imminent privatisation.
In response to a comment from BCPOU leader Bernard Evans that Bahamian buyers had been excluded from the process, Minister Laing said the search was for a strategic partner who would have the financial and technological resources to "take BTC to the level at which the government wanted it to be." That position did not necessarily exclude Bahamian proposals, but it was unlikely that a Bahamian group would fit the bill.
According to the minutes, Minister Carl Bethel said the government wanted a strong international connection, a company with experience in all areas of telecommunications and with the financial strength and operating platform to be able to support BTC's infrastructure and mission. He questioned whether any Bahamian entity possessed those qualities.
Minister Laing said that unlike the previous attempt, this time the government was not seeking to shape the product that was on offer, outside of its conviction that privatising BTC would be better for the country, for the economy, and ultimately for the workers. The government was reforming the regulatory environment and selling BTC as it exists today, and the role of the advisory committee was to determine the best buyer.
CABLE & WIRELESS
The BTC auction notice attracted six initial responses, and four were invited to submit bids. Only two were received by the December 11, 2009 deadline - from JPMorgan Chase's private equity arm and from Atlantic Tele-Network, a consortium that included Colina Financial Advisors. Neither was considered to have met the government's criteria.
According to minutes of the July 23, 2010 meeting, the advisory committee unanimously rejected both bids as "departing significantly in their requirements and expectations from the conditions acceptable to the government."
The committee was then informed by Julian Francis that, following its recent restructuring, Cable & Wireless had expressed an interest in BTC. While both union leaders had reservations about C&W in terms of employee relations, the advisory committee unanimously endorsed a recommendation to engage in talks with the company, which is a major regional and international telecoms operator.
In October of last year, the advisory committee met for the final time to consider the report of the working committee on its talks with Cable & Wireless. According to Julian Francis, a non-binding memorandum of understanding had been drafted that valued BTC at $400-450 million, based on a two-year exclusivity period.
"However, Cable & Wireless believes that an extension may be necessary for BTC to prepare for competition, which would be aggressive given the low threshold for investment under the new regulatory regime," Francis said. "In comparison, the Bluewater proposal was for a five-year exclusivity period for mobile, with each year being valued at between $60-70 million by the committee's advisors."
THE MEMORANDUM OF UNDERSTANDING
Francis said the MOU called for Cable & Wireless to produce a five-year business plan acceptable to government before a deal could be closed. This plan would spell out Bahamian involvement in the management of BTC and Cable & Wireless' international operations.
Going forward, he said, the government wanted to have a veto over remuneration, staff cuts, the sale of assets and the location of operations. According to Francis, Cable & Wireless was "convinced that BTC should be run by a Bahamian and the government had indicated that management must remain in the Bahamas."
Both union leaders reiterated their focus on job protection, but Minister Deveaux pointed out that taxpayers wanted better service. Sir William Allen, the government's economic advisor, said technology would continue to erode whatever advantages BTC currently had, even if the market was not liberalised.
With respect to workforce restructuring, BCPOU leader Bernard Evans said "voluntary separation packages are an acceptable option once the terms are suitable." Minister Laing responded that there was room for standstill, with compulsory reductions tied to the end of the exclusivity period. Both union leaders agreed that a three or four year exclusivity period would be "more manageable" in this regard.
The advisory committee agreed to recommend only voluntary staff cuts prior to the end of the exclusivity period, and urged government to extend this period "to help with job preservation in the short term." In a closing note, the October minutes recorded that the committee's recommendations would be passed to government for a final decision, with Minister Laing satisfied that that "all major issues have been discussed and agreement reached."
On December 2, the government announced the signing of the memorandum of understanding, as recommended by the advisory committee, on the same day it was signed. Talks then began to develop more precise contract language to clarify all issues. The agreement included a three-year exclusivity period for mobile and a voluntary workforce restructuring.
POLITICAL RESISTANCE
But within days of that announcement, the two union leaders and the PLP had begun a drumbeat of opposition to the deal - which was already 13 years too late. "This is just not the right time," said BCPOU leader Evans. "We don't support Cable & Wireless - period." He insisted that separation packages offered to workers should be more than BTC employees got in 1999 (which cost the country some $90 million), and should be enough to last workers a lifetime.
According to the prime minister, "the PLP agreed just before the election to sell BTC to a foreigner, who some think was fronting for some of them. And they never told the public a single word that they agreed to sell BTC. The reality is that the union and the PLP are at one in their fight against this exercise. And you can figure out why the PLP, which agreed to sell to a one-man show, is now opposed to selling to a $2.5 billion publicly traded company that operates around the world.
As the minutes of the advisory committee show, the plain fact is that the union leaders were part and parcel of the entire privatisation process, and after seeking concessions from the government they signed off on the major components of the memorandum of understanding.
"We went out of our way to protect jobs at BTC to the public's disadvantage," the prime minister told a meeting in Grand Bahama recently. "As night follows day, rates are high because BTC has more people employed than they need, and they are seeking to protect what they have because there's plenty juice there for them."
As for the prospects of general strike similar to that which occurred in 1958, it seems clear that the BTC unions' action is a greedy attempt on the part of special interests to hold the nation to ransom rather than a struggle for democracy. And as for the question of Bahamian as opposed to foreign ownership, why hasn't this been raised before?
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
January 12, 2011
tribune242
By LARRY SMITH
"What I've found out about change is that when you propose it
people don't want it, when you are doing it it's hell, and afterwards
they think it's always been like that."
- former British Prime Minister Tony Blair.
IN EARLY 2008, about 10 months after the last general election, the Ingraham government appointed a new privatisation committee (headed by bankers T. B. Donaldson and Julian Francis), with a mandate to find a buyer for the Bahamas Telecommunications Company as soon as possible.
This was a goal that had been pursued ever since the FNM first came to power in 1992. In fact, even before then the Pindling regime had been seeking to divest state assets that were draining the treasury. By the early 90s the PLP had decided to offload government-owned hotels. And believe it or not, they also had confidential talks with Cable & Wireless about a stake in BaTelCo.
Privatisation continued to be pursued by the PLP during its most recent term in office, from 2002 to 2007. Although the Christie administration eventually cancelled the auction launched by the FNM, they went on to start their own process, and agreed (just before the 2007 election) to sell BTC to Bluewater Ventures, a foreign firm with an uncertain ownership and no operating history.
But the incoming FNM government could find no evidence that a deal had been finalised, although Bluewater - in the shape of American executive John Gregg and PLP politico/lawyer Brave Davis - insisted that the Christie cabinet had shaken hands on an agreement. In mid-2008, the Ingraham administration relaunched the privatisation process, eventually paying Bluewater $1.9 million to cover its out-of-pocket costs.
THE FIRST PRIVATISATION
This was surely a damnable waste of money, but the reasoning behind it was clear. The policy had always been to sell a stake in BTC to a major strategic partner - a company with the technical expertise, operating record, and bulk purchasing power needed to take the corporation to another level. There was no interest in selling to someone who merely had the financial capacity to buy.
In 1999, during the first privatisation exercise, Prime Minister Hubert Ingraham said that if the government simply transferred ownership of BTC to its employees, the corporation would go out of business as soon as it faced real competition. A strategic partner, he said, would enable BTC to compete and move forward in a transformed market.
"We seek to privatise BTC in the national interest," Ingraham said a decade ago, "and we have sought a phased approach to ensure minimal disruption." More recently he said: "We told Bahamians from day one that it was not possible to continue to have a monopoly in the telephone business and we established policies to prepare ourselves. There are hundreds and hundreds of people employed in the telecoms sector who were not so employed before we began to liberalise the market."
Before the government began downsizing BaTelCo in the mid-90s, the corporation had accumulated a workforce of 2100 to accomplish what experts said should require only a few hundred. And this padded payroll was clearly reflected in BaTelCo's dismal performance up to that point.
In 1992 the corporation's revenue was $120.3 million, with a net loss of $1.8 million that year. But after a 50 per cent reduction in staff (based on generous separation packages), BaTelCo's 2001 revenue was $226.4 million, producing a net profit of $57.3 million - almost as much as the corporation had earned over 10 years from 1982 to 1992.
THE CURRENT PROCESS
In 2008, the government appointed an advisory committee to oversee the new BTC sale process, under the chairmanship of State Finance Minister Zhivago Laing. This group would formulate the final recommendations to cabinet from information presented by the privatisation committee (headed by Donaldson and Francis). The leaders of both BTC unions were full members of the advisory committee.
The advisory committee authorised a new BTC auction in mid-2009, with the publication of a notice inviting bidders to register. Qualified parties were asked for technical proposals, and the best of these were invited to submit financial bids. The privatisation committee reviewed the bids and passed them on to the advisory committee for evaluation.
At the same time, major changes to the regulatory environment were being pursued to support market liberalisation. These included legislation to set up a new Utilities Regulation and Competition Authority to govern both broadcasting and telecommunications. In short, the government was totally reforming our antiquated communications laws.
According to the April 29, 2009 minutes of the advisory committee, Minister Laing said the new legislation was the result of "a vast amount of work and represented a new era for the Bahamas" that would bring clarity to what could, and could not, be done in the telecoms industry.
UNION ISSUES
At the July 13, 2009 meeting of the advisory committee, Minister Earl Deveaux recalled that during the first privatisation exercise, BTC workers rejected the decision and responded "in a way that brought great distress to the nation." He asked the union leaders for assurances that this would not be repeated. The BCPMU is the middle managers union. The BCPOU is the line staff union.
At that meeting BCPMU president William Carroll said the major issue for the unions in 1999 had been the separation packages, and that was why workers demonstrated. He added that treatment of staff should be one of the determinants for a successful bid, but went on to acknowledge that BTC employees now accepted the fact of imminent privatisation.
In response to a comment from BCPOU leader Bernard Evans that Bahamian buyers had been excluded from the process, Minister Laing said the search was for a strategic partner who would have the financial and technological resources to "take BTC to the level at which the government wanted it to be." That position did not necessarily exclude Bahamian proposals, but it was unlikely that a Bahamian group would fit the bill.
According to the minutes, Minister Carl Bethel said the government wanted a strong international connection, a company with experience in all areas of telecommunications and with the financial strength and operating platform to be able to support BTC's infrastructure and mission. He questioned whether any Bahamian entity possessed those qualities.
Minister Laing said that unlike the previous attempt, this time the government was not seeking to shape the product that was on offer, outside of its conviction that privatising BTC would be better for the country, for the economy, and ultimately for the workers. The government was reforming the regulatory environment and selling BTC as it exists today, and the role of the advisory committee was to determine the best buyer.
CABLE & WIRELESS
The BTC auction notice attracted six initial responses, and four were invited to submit bids. Only two were received by the December 11, 2009 deadline - from JPMorgan Chase's private equity arm and from Atlantic Tele-Network, a consortium that included Colina Financial Advisors. Neither was considered to have met the government's criteria.
According to minutes of the July 23, 2010 meeting, the advisory committee unanimously rejected both bids as "departing significantly in their requirements and expectations from the conditions acceptable to the government."
The committee was then informed by Julian Francis that, following its recent restructuring, Cable & Wireless had expressed an interest in BTC. While both union leaders had reservations about C&W in terms of employee relations, the advisory committee unanimously endorsed a recommendation to engage in talks with the company, which is a major regional and international telecoms operator.
In October of last year, the advisory committee met for the final time to consider the report of the working committee on its talks with Cable & Wireless. According to Julian Francis, a non-binding memorandum of understanding had been drafted that valued BTC at $400-450 million, based on a two-year exclusivity period.
"However, Cable & Wireless believes that an extension may be necessary for BTC to prepare for competition, which would be aggressive given the low threshold for investment under the new regulatory regime," Francis said. "In comparison, the Bluewater proposal was for a five-year exclusivity period for mobile, with each year being valued at between $60-70 million by the committee's advisors."
THE MEMORANDUM OF UNDERSTANDING
Francis said the MOU called for Cable & Wireless to produce a five-year business plan acceptable to government before a deal could be closed. This plan would spell out Bahamian involvement in the management of BTC and Cable & Wireless' international operations.
Going forward, he said, the government wanted to have a veto over remuneration, staff cuts, the sale of assets and the location of operations. According to Francis, Cable & Wireless was "convinced that BTC should be run by a Bahamian and the government had indicated that management must remain in the Bahamas."
Both union leaders reiterated their focus on job protection, but Minister Deveaux pointed out that taxpayers wanted better service. Sir William Allen, the government's economic advisor, said technology would continue to erode whatever advantages BTC currently had, even if the market was not liberalised.
With respect to workforce restructuring, BCPOU leader Bernard Evans said "voluntary separation packages are an acceptable option once the terms are suitable." Minister Laing responded that there was room for standstill, with compulsory reductions tied to the end of the exclusivity period. Both union leaders agreed that a three or four year exclusivity period would be "more manageable" in this regard.
The advisory committee agreed to recommend only voluntary staff cuts prior to the end of the exclusivity period, and urged government to extend this period "to help with job preservation in the short term." In a closing note, the October minutes recorded that the committee's recommendations would be passed to government for a final decision, with Minister Laing satisfied that that "all major issues have been discussed and agreement reached."
On December 2, the government announced the signing of the memorandum of understanding, as recommended by the advisory committee, on the same day it was signed. Talks then began to develop more precise contract language to clarify all issues. The agreement included a three-year exclusivity period for mobile and a voluntary workforce restructuring.
POLITICAL RESISTANCE
But within days of that announcement, the two union leaders and the PLP had begun a drumbeat of opposition to the deal - which was already 13 years too late. "This is just not the right time," said BCPOU leader Evans. "We don't support Cable & Wireless - period." He insisted that separation packages offered to workers should be more than BTC employees got in 1999 (which cost the country some $90 million), and should be enough to last workers a lifetime.
According to the prime minister, "the PLP agreed just before the election to sell BTC to a foreigner, who some think was fronting for some of them. And they never told the public a single word that they agreed to sell BTC. The reality is that the union and the PLP are at one in their fight against this exercise. And you can figure out why the PLP, which agreed to sell to a one-man show, is now opposed to selling to a $2.5 billion publicly traded company that operates around the world.
As the minutes of the advisory committee show, the plain fact is that the union leaders were part and parcel of the entire privatisation process, and after seeking concessions from the government they signed off on the major components of the memorandum of understanding.
"We went out of our way to protect jobs at BTC to the public's disadvantage," the prime minister told a meeting in Grand Bahama recently. "As night follows day, rates are high because BTC has more people employed than they need, and they are seeking to protect what they have because there's plenty juice there for them."
As for the prospects of general strike similar to that which occurred in 1958, it seems clear that the BTC unions' action is a greedy attempt on the part of special interests to hold the nation to ransom rather than a struggle for democracy. And as for the question of Bahamian as opposed to foreign ownership, why hasn't this been raised before?
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
January 12, 2011
tribune242
Tuesday, December 28, 2010
...the National Congress of Trade Unions (NCTU) plans a major national strike that could possibly have devastating effects on the Bahamian economy
The new year could begin with a national strike
thenassauguardian editorial
Is it possible that while Prime Minister Hubert Ingraham was busy preparing notes for his annual Christmas Address to the nation, members of the National Congress of Trade Unions (NCTU) were busy planning a major national strike that could possibly have devastating effects on the Bahamian economy.
It seems possible.
In fact, on Christmas Eve, executives of the NCTU held a press conference where they not only dismissed the prime minister’s warning about their union’s actions, but they also took the time to point out that a national strike could occur soon.
It’s not the kind of action the prime minister wants, or need at this time.
With the light of hope of an economic recovery on the horizon, the prime minister is looking ahead with optimism for the Bahamian people.
Needless to say, that in spite of all the setbacks which the country and the government have experienced during 2010, for the most part Prime Minister Ingraham and his government appear to be finishing off the year strong.
Of course, the plight of a high crime rate and a record breaking murder rate for 2010 will haunt the prime minister’s 2010 performance. However, some feel that the prime minister has navigated the storms of adversity well.
As 2011 approaches, talks of a national strike by the major unions in the country is not what the prime minister had in mind when he reflected on what lies ahead for his government in the new year.
However, it is something that has to be factored in, because apparently, the NCTU and the BCPOU have no plans of backing down any time soon. As the prime minister is adamant about selling BTC to Cable and Wireless, the unions are just as persistent in their stand to fight against it.
There is a chance that the new year could begin on the rough path for the government of The Bahamas. The stand by both sides could lead a major battle in 2011.
The year 2011 is unofficially the year for campaigning, as both the Free National Movement and the Progressive Liberal Party shift into full gear and prepare for a general election in 2012.
The prime minister would prefer to spend the start and the entire year of 2011 doing the things that needs to be done to ensure his party’s re-election. Having a fight with the country’s major unions is not a part of that agenda.
With just a few days left before 2010 ends and 2011 begins, will the prime minister, the NCTU and BCPOU find some solution to the BTC dilemma and avoid a national strike at the beginning of the year?
As the clock ticks away on the closing of an old year, as far as the NCTU is concerned, it signals only the beginning of what can be expected in 2011 if an amicable solution is not reached.
As far as end of the year and New Year’s resolutions go, one can only wonder what tops the list of resolutions for Prime Minister Ingraham for 2011.
12/28/2010
thenassauguardian editorial
thenassauguardian editorial
Is it possible that while Prime Minister Hubert Ingraham was busy preparing notes for his annual Christmas Address to the nation, members of the National Congress of Trade Unions (NCTU) were busy planning a major national strike that could possibly have devastating effects on the Bahamian economy.
It seems possible.
In fact, on Christmas Eve, executives of the NCTU held a press conference where they not only dismissed the prime minister’s warning about their union’s actions, but they also took the time to point out that a national strike could occur soon.
It’s not the kind of action the prime minister wants, or need at this time.
With the light of hope of an economic recovery on the horizon, the prime minister is looking ahead with optimism for the Bahamian people.
Needless to say, that in spite of all the setbacks which the country and the government have experienced during 2010, for the most part Prime Minister Ingraham and his government appear to be finishing off the year strong.
Of course, the plight of a high crime rate and a record breaking murder rate for 2010 will haunt the prime minister’s 2010 performance. However, some feel that the prime minister has navigated the storms of adversity well.
As 2011 approaches, talks of a national strike by the major unions in the country is not what the prime minister had in mind when he reflected on what lies ahead for his government in the new year.
However, it is something that has to be factored in, because apparently, the NCTU and the BCPOU have no plans of backing down any time soon. As the prime minister is adamant about selling BTC to Cable and Wireless, the unions are just as persistent in their stand to fight against it.
There is a chance that the new year could begin on the rough path for the government of The Bahamas. The stand by both sides could lead a major battle in 2011.
The year 2011 is unofficially the year for campaigning, as both the Free National Movement and the Progressive Liberal Party shift into full gear and prepare for a general election in 2012.
The prime minister would prefer to spend the start and the entire year of 2011 doing the things that needs to be done to ensure his party’s re-election. Having a fight with the country’s major unions is not a part of that agenda.
With just a few days left before 2010 ends and 2011 begins, will the prime minister, the NCTU and BCPOU find some solution to the BTC dilemma and avoid a national strike at the beginning of the year?
As the clock ticks away on the closing of an old year, as far as the NCTU is concerned, it signals only the beginning of what can be expected in 2011 if an amicable solution is not reached.
As far as end of the year and New Year’s resolutions go, one can only wonder what tops the list of resolutions for Prime Minister Ingraham for 2011.
12/28/2010
thenassauguardian editorial
Sunday, December 12, 2010
The Progressive Liberal Party (PLP)... the newest trade union in The Bahamas?
Unions must separate politics from protest
thenassauguardian editorial
The Progressive Liberal Party (PLP) must be the newest trade union in the country. Numerous PLP members of Parliament and senior party officers attended the mass union rally at the Bahamas Communications and Public Officers (BCPOU) Hall on Wednesday night.
Having the PLP present at the rally does not help the unions’ cause. The unions argue that they want BTC sold to Bahamians. The PLP wanted to sell 49 percent of BTC to a nebulous network of foreigners before it lost the government in 2007.
The PLP was at the rally because the unions are causing trouble for the government. A PLP that spent much of its time in opposition factionalized is now seeking to capitalize on the missteps of the Free National Movement (FNM). The PLP was not there to support workers.
The unions are advocating for a policy we support. Bahamian assets should be sold to Bahamians. They are also attempting to preserve jobs at the company.
Cable and Wireless Communications (CWC) wants to terminate 30 percent of the employees at the Bahamas Telecommunications Company (BTC). The unions oppose this move.
We think the public service is overstaffed and inefficient. However, the unions have a right to fight for the members they represent.
In doing so, the unions must ensure they do not allow politicians to latch on to their cause for political gain. When voters look at pictures in newspapers and see the opposition at the rally, the protest could appear politically motivated rather than being based on a dispute between government and labor.
The opposition is hoping the BTC dispute becomes as nasty as it did at the end of the FNM’s second term in office, when angry union members confronted Prime Minister Hubert Ingraham in front of the Cabinet Office.
Current PLP Golden Gates MP Shane Gibson was the BCPOU president at the time. He became a PLP candidate shortly after his union embarrassed the government.
We hope the current leaders of the BTC unions are not on the offensive against the government because they are auditioning for political office. The presence of the PLP at the rally could give that impression.
If the unions are operating independent of the PLP, they should make it known that the opposition is not a part of their camp.
The PLP has no message on the BTC issue that is different from the FNM. The unions should not allow the opposition to appear to be their champion when they share the same policies as the FNM.
12/10/2010
thenassauguardian editorial
thenassauguardian editorial
The Progressive Liberal Party (PLP) must be the newest trade union in the country. Numerous PLP members of Parliament and senior party officers attended the mass union rally at the Bahamas Communications and Public Officers (BCPOU) Hall on Wednesday night.
Having the PLP present at the rally does not help the unions’ cause. The unions argue that they want BTC sold to Bahamians. The PLP wanted to sell 49 percent of BTC to a nebulous network of foreigners before it lost the government in 2007.
The PLP was at the rally because the unions are causing trouble for the government. A PLP that spent much of its time in opposition factionalized is now seeking to capitalize on the missteps of the Free National Movement (FNM). The PLP was not there to support workers.
The unions are advocating for a policy we support. Bahamian assets should be sold to Bahamians. They are also attempting to preserve jobs at the company.
Cable and Wireless Communications (CWC) wants to terminate 30 percent of the employees at the Bahamas Telecommunications Company (BTC). The unions oppose this move.
We think the public service is overstaffed and inefficient. However, the unions have a right to fight for the members they represent.
In doing so, the unions must ensure they do not allow politicians to latch on to their cause for political gain. When voters look at pictures in newspapers and see the opposition at the rally, the protest could appear politically motivated rather than being based on a dispute between government and labor.
The opposition is hoping the BTC dispute becomes as nasty as it did at the end of the FNM’s second term in office, when angry union members confronted Prime Minister Hubert Ingraham in front of the Cabinet Office.
Current PLP Golden Gates MP Shane Gibson was the BCPOU president at the time. He became a PLP candidate shortly after his union embarrassed the government.
We hope the current leaders of the BTC unions are not on the offensive against the government because they are auditioning for political office. The presence of the PLP at the rally could give that impression.
If the unions are operating independent of the PLP, they should make it known that the opposition is not a part of their camp.
The PLP has no message on the BTC issue that is different from the FNM. The unions should not allow the opposition to appear to be their champion when they share the same policies as the FNM.
12/10/2010
thenassauguardian editorial
Wednesday, December 8, 2010
Unions object to the sale of the Bahamas Telecommunications Company Limited (BTC) to Cable and Wireless Communications (CWC)
Unions' distaste with proposed BTC sale grows
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
The government’s decision to sign a Memorandum of Understanding (MOU) with Cable and Wireless Communications (CWC) for the sale of a majority share of the Bahamas Telecommunications Company (BTC) continues to be met with strong reaction from some union leaders.
The Nassau Guardian understands that the unions representing workers at BTC may be contemplating action intended to voice a stronger objection to the move.
Representatives from the Bahamas Communications and Public Officers Unions (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) are also attempting to build support outside the trade union movement.
Union leaders met with members of the Progressive Liberal Party (PLP) Sunday night to officially offer their disapproval of the sale of BTC to CWC.
Member of Parliament for West End and Bimini Obie Wilchcombe, who is leader of opposition business in the House of Assembly, confirmed that he and his colleagues met with members of the union and listened to their concerns.
He said the PLP is waiting to look over the MOU signed between the government and CWC before it offers an official position on the deal.
“We are looking at their issues and are hoping to get a sight of the Memorandum of Understanding,” said Wilchcombe.
BCPMU President William Carroll suggested that the unions would go around to every major civic organization in the country to garner support for their campaign against the sale of BTC to CWC.
The unions’ opposition to the sale to CWC has not changed since months before the MOU was signed.
The unions’ primary concern over the deal is job security for BTC workers.
Prime Minister Hubert Ingraham revealed during a press conference not long before the MOU was signed that CWC had asked for a 30 percent decrease in the staff complement at BTC.
However, Ingraham said the government would only support a deal with voluntary separation packages.
A press release on the MOU signing revealed that the government and CWC agreed to the voluntary packages.
“There will be a restructuring of the workforce of BTC following completion of the transaction, which will be carried out on an entirely voluntary basis,” the release said. “A detailed plan is in the process of being developed.”
BCPOU President Bernard Evans contended many of the individuals who would receive packages are at an age where they may not be able to find gainful employment when their packages dry up.
“We aren’t advocating packages,” said Evans. “With the ages of some of these people, finding meaningful employment is dismal.”
12/7/2010
thenassauguardian
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
The government’s decision to sign a Memorandum of Understanding (MOU) with Cable and Wireless Communications (CWC) for the sale of a majority share of the Bahamas Telecommunications Company (BTC) continues to be met with strong reaction from some union leaders.
The Nassau Guardian understands that the unions representing workers at BTC may be contemplating action intended to voice a stronger objection to the move.
Representatives from the Bahamas Communications and Public Officers Unions (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) are also attempting to build support outside the trade union movement.
Union leaders met with members of the Progressive Liberal Party (PLP) Sunday night to officially offer their disapproval of the sale of BTC to CWC.
Member of Parliament for West End and Bimini Obie Wilchcombe, who is leader of opposition business in the House of Assembly, confirmed that he and his colleagues met with members of the union and listened to their concerns.
He said the PLP is waiting to look over the MOU signed between the government and CWC before it offers an official position on the deal.
“We are looking at their issues and are hoping to get a sight of the Memorandum of Understanding,” said Wilchcombe.
BCPMU President William Carroll suggested that the unions would go around to every major civic organization in the country to garner support for their campaign against the sale of BTC to CWC.
The unions’ opposition to the sale to CWC has not changed since months before the MOU was signed.
The unions’ primary concern over the deal is job security for BTC workers.
Prime Minister Hubert Ingraham revealed during a press conference not long before the MOU was signed that CWC had asked for a 30 percent decrease in the staff complement at BTC.
However, Ingraham said the government would only support a deal with voluntary separation packages.
A press release on the MOU signing revealed that the government and CWC agreed to the voluntary packages.
“There will be a restructuring of the workforce of BTC following completion of the transaction, which will be carried out on an entirely voluntary basis,” the release said. “A detailed plan is in the process of being developed.”
BCPOU President Bernard Evans contended many of the individuals who would receive packages are at an age where they may not be able to find gainful employment when their packages dry up.
“We aren’t advocating packages,” said Evans. “With the ages of some of these people, finding meaningful employment is dismal.”
12/7/2010
thenassauguardian
Tuesday, June 8, 2010
Bahamas Communications and Public Officers Union does not support Bahamas Telecommunications Company's shares being sold to Cable and Wireless
BTC union rejects bidder
BY KEVA LIGHTBOURNE ~ Guardian Senior Reporter ~ kdl@nasguard.com:
The union that represents line staff at The Bahamas Telecommunications Company (BTC) is objecting to the government's decision to enter talks with regional telecoms giant Cable & Wireless for a 51 percent stake in the state-owned entity.
Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans said the labor body would in no way support any amount of shares being sold to Cable & Wireless.
"Their track record as far as labor relations is not good and even given the potential model that they want to implement in terms of regional governance and control, it is not conducive to the Bahamian psyche that I know, that we know," Evans explained.
"We go on record as saying that we do not support any kind of sale to Cable & Wireless."
The Nassau Guardian understands that talks begun recently between the government and Cable & Wireless over the sale of the majority interest in BTC, which employs hundreds of Bahamians. This came despite the company turning down the chance to officially bid last year when a number of partnerships paid $25,000 to be a part of the process.
Cable & Wireless had been considered among the best prospects to purchase BTC when it opted out.
The Guardian reported recently that the talks that are now taking place between the company and the government sparked frustration among the two bidders that had been short-listed, with one saying it was actively considering whether it wanted to move forward in the process.
The two existing bidders — a JP Morgan/Vodafone combination and Atlantic Tele Network (ATN), partnering with CFAL — were among four proposals, which were short-listed last October.
Evans said the union is not supporting a sale to Vodafone either.
He said while privatization for BTC has been looming for a while, Bahamians should be given the first opportunity to purchase.
"And I believe the government was trying to get as much as it can get for the 51 percent sale for BTC, but given some of the figures we have been hearing it is not that attractive," Evans said.
"We are still reserved in that BTC is a very profitable entity. It is Bahamian-controlled, Bahamian-owned, and we believe it still should be Bahamian-owned and if [there is] any opportunity for any sale Bahamians should be looked at first," he said.
Last month, Prime Minister Hubert Ingraham told The Nassau Guardian that there would be no fire sale of BTC.
"We have given the BTC privatization committee some parameters as to what bid would be acceptable to ourselves," he said.
"They are still having discussions, we expect to hear from them soon, but they have not formed any recommendation yet. We gave them the parameters but we are not having a fire sale, we don't have to sell immediately," Ingraham said.
June 8, 2010
thenassauguardian
BY KEVA LIGHTBOURNE ~ Guardian Senior Reporter ~ kdl@nasguard.com:
The union that represents line staff at The Bahamas Telecommunications Company (BTC) is objecting to the government's decision to enter talks with regional telecoms giant Cable & Wireless for a 51 percent stake in the state-owned entity.
Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans said the labor body would in no way support any amount of shares being sold to Cable & Wireless.
"Their track record as far as labor relations is not good and even given the potential model that they want to implement in terms of regional governance and control, it is not conducive to the Bahamian psyche that I know, that we know," Evans explained.
"We go on record as saying that we do not support any kind of sale to Cable & Wireless."
The Nassau Guardian understands that talks begun recently between the government and Cable & Wireless over the sale of the majority interest in BTC, which employs hundreds of Bahamians. This came despite the company turning down the chance to officially bid last year when a number of partnerships paid $25,000 to be a part of the process.
Cable & Wireless had been considered among the best prospects to purchase BTC when it opted out.
The Guardian reported recently that the talks that are now taking place between the company and the government sparked frustration among the two bidders that had been short-listed, with one saying it was actively considering whether it wanted to move forward in the process.
The two existing bidders — a JP Morgan/Vodafone combination and Atlantic Tele Network (ATN), partnering with CFAL — were among four proposals, which were short-listed last October.
Evans said the union is not supporting a sale to Vodafone either.
He said while privatization for BTC has been looming for a while, Bahamians should be given the first opportunity to purchase.
"And I believe the government was trying to get as much as it can get for the 51 percent sale for BTC, but given some of the figures we have been hearing it is not that attractive," Evans said.
"We are still reserved in that BTC is a very profitable entity. It is Bahamian-controlled, Bahamian-owned, and we believe it still should be Bahamian-owned and if [there is] any opportunity for any sale Bahamians should be looked at first," he said.
Last month, Prime Minister Hubert Ingraham told The Nassau Guardian that there would be no fire sale of BTC.
"We have given the BTC privatization committee some parameters as to what bid would be acceptable to ourselves," he said.
"They are still having discussions, we expect to hear from them soon, but they have not formed any recommendation yet. We gave them the parameters but we are not having a fire sale, we don't have to sell immediately," Ingraham said.
June 8, 2010
thenassauguardian
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