On a fairly regular basis Caribbean telecoms companies has engaged in some kind of organisational restructuring, which frequently results in job loss. Typically those exercises occurred when competition was imminent, but still seem to be happening although markets should have settled.
Although we might believe we understand it, the thrust to be more competitive has become a crucial business strategy worldwide. Firms might not necessarily need to compete globally, but the need to be competitive has trickled down into local and regional markets.
In the Caribbean telecoms space, which historically was dominated by single monopoly players, the liberalisation of those markets drove incumbents to streamline their operations and become more efficient, in order to be more competitive, maintain their market share, and hopefully keep profits up. However, that game plan, which was followed by virtually all incumbent providers in the region that now operate in liberalised and competitive markets, can be traumatic to the industry during the transition period. Of particular note is the organisational restructuring that tends to occur, which usually results in scores, even hundreds, of employees being separated from the firm.
Having said this, and as a price for the monopoly privilege, many countries expected the incumbent telecoms companies to absorb a sizeable number of school-leavers every year, resulting in bloated staffing numbers. Further, in the then unregulated industry, the companies did not need to optimise their operations. Instead, they could adjust their rates, so that they still achieved the desired return on their investment. However, when competition was imminent, the business model had to change, and difficult decisions needed to be made.
Post liberalisation, the markets are still in flux
Currently, most Caribbean countries that liberalised their telecoms sector did so at least five years ago; so it could be argued that those markets should have stabilised by now. While the associated discomfort of the transition period from monopoly to competition would have ended in most countries, the sector and the even the business landscape has been evolving, and the companies must also to respond to those changes.
In Trinidad and Tobago, there has been a major controversy in the form of workers’ unions alleging that the incumbent telecoms provider, Telecommunications Services of Trinidad and Tobago (TSTT), will be embarking upon severe job cuts, which could affect as many as 2,000 workers (Source: Trinidad and Tobago Guardian). The company has since denied that thousands of workers will be dismissed:
“The information circulating that the organisation is embarking on a massive retrenchment exercise is fabricated sensationalism. TSTT has no intention of “planning a new company and firing all workers,’” the statement said.
(Source: St. Lucia News Online)
However, it appears that there are indeed plans to restructure the organisation, which could result in some job loss; but the overarching plan is to transform TSTT to one better aligned to today’s business environment and consumers:
TSTT said that it would undertake a skills assessment to ensure employees have the right tools and training to move into the new direction of an “agile broadband communications company,” adding that no decision affecting staff would be made without involving the company’s recognised majority unions.
(Source: St. Lucia News Online)
More restructuring is to come
Although the anticipated TSTT restructuring effort has appeared to ruffle a lot of feathers, it must be highlighted that both Digicel and Flow, the major carriers in the region, have also been undergoing significant restructuring. For example, in 2017, and consistent with its 2030 plan, Digicel announced that over an 18-month period it intended to cut 25% of its global workforce, or more than 1,500 jobs (Source: The Irish Times).
Hence, as companies strive to become more agile and focus on what they perceive as their core business, they are also taking advantage of technology, such as cloud, automation and artificial intelligence, to name a few, to help them become more efficient, reduce the margin of error, whilst benefitting from cost-effective alternatives. It thus means that into the foreseeable future, the telecoms sector in the Caribbean will continue to evolve. However, our societies ought to be better prepared for the consequences of those changes, which frequently are necessary to facilitate improved services, the introduction of newer technologies, and more competitive prices, which we also desire.
Image credit: Pixabay (Pexels)
