TIM SHUFELT
From Monday's Globe and Mail Published on Sunday, Jul. 01, 2007 1:00AM EDT Last updated on Friday, Apr. 03, 2009 9:59AM EDT
Union officials representing BCE Inc. employees are gearing up to protect their members' jobs after Saturday's announcement that a private equity group, led by the Ontario Teachers Pension Plan, will be taking over Canada's biggest telecommunications company.
Over the next several months, the Communications, Energy and Paperworkers Union of Canada (CEP), which represents more than 6,000 Bell technicians and operators, will be hatching strategies to react to whatever changes BCE's new owners may propose, including the possibility of downsizing, said union vice-president John Edwards.
“Layoffs are never acceptable, particularly in the manner they have been doing them. They have cut back on staff … quite drastically over the last few years, and I don't believe there is any more room for cuts in [our] departments and still provide the level of service customers expect,” Mr. Edwards said.
In 2004, a cost-cutting project at BCE nicknamed Galileo slashed 5,000 jobs, followed by up to 4,000 additional layoffs last year. Meanwhile, the bargaining group representing BCE's 9,000-plus clerical and sales staff is worried about the continued outsourcing of jobs to India.
“Our strongest fight right now is let's keep the jobs in Canada and let's keep our call centres open and stop sending jobs offshore,” said Laura Davis, vice-president of the Canadian Telecommunications Employees' Association. “… I don't think that will change no matter the head of the company.”
BCE's employees span the country, but almost 55 per cent are concentrated in Ontario, with another 37 per cent in Quebec.
Mr. Edwards said he will also keep a close eye on any threats to the employee benefit plans.
“Even under the present ownership, benefits were being attacked,” he said.
Part of the employee compensation package currently includes a voluntary stock option plan, which is expected to disappear after BCE is converted into a private company.
“That benefit is going to have to be replaced,” Mr. Edwards said. Two of CEP's collective agreements in the crafts and services group expire this fall.
He added he is disappointed with the prospect of BCE going private and is holding out hope for Vancouver-based Telus Corp. to come back into the fray with a hostile takeover bid, after withdrawing from the auction last week over concerns with the bidding process.
Mr. Edwards acknowledged that a Telus takeover “would have serious impacts on employment, because there would be common departments that would merge to create layoffs, but it would at least keep the company Canadian.”
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