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. <\/em><\/p>\n
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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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
In Trinidad and Tobago, there has been a major controversy in the form of workers\u2019 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:\u00a0 Trinidad and Tobago Guardian<\/a>). The company has since denied that thousands of workers will be dismissed:<\/p>\n
(Source:\u00a0 St. Lucia News Online<\/a>)<\/p>\n
(Source:\u00a0 St. Lucia News Online<\/a>)<\/p>\n
More restructuring is to come<\/h3>\n
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\u00a0 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:\u00a0 The Irish Times<\/a>).<\/p>\n
Image credit:\u00a0 Pixabay (Pexels<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"