Following a series of salary disputes in telecoms sectors across the region, this post offers some thoughts on two frequently opposing considerations: wages and competitiveness.<\/em><\/p>\n
\u2026 over 90% of BTC\u2019s line staff in our bargaining unit are underpaid, based on the 75th<\/sup> percentile, when compared with similar companies nationally and regionally\u2026(Source: The Nassau Guardian<\/a>).<\/p><\/blockquote>\n
Economic pressures and decreasing purchasing power<\/h3>\n
In many large and established companies, there is usually a provision for an increment to employee salaries to be made annually to offset the effects of inflation. While the payment of annual increments might be the case with many telecom\/ICT companies in the region, persons are still experiencing difficulty making ends meet, or maintaining their current lifestyles.<\/p>\n
Moreover, virtually all Caribbean countries experienced an economic slump over the last few years, which caused a contraction of most markets. Growth ground to a halt; and when coupled with the on-going recession in the United States, along with the weaker US Dollar (o which many of our currencies are pegged); the result has been a marked decrease in purchasing power, which has a direct impact on the cost of goods and services locally.<\/p>\n
Hence, the increment, although welcomed, might not necessarily accommodate the changes in the cost of living \u2013 to purchase groceries, a gallon\/litre of petrol, electricity, etc. \u2013 all of which are affected by the state of both our national economy, and that of our\u00a0major trading partners.<\/p>\n
The changing focus on\u00a0competitiveness<\/h3>\n
Competition in the telecoms sector, and across most other industries, demands that companies, among other things, increase productivity, improve efficiencies, and manage costs. From a human resource perspective, transitioning to operate in that environment has often required organisational restructuring, redundancies and other options for employee disengagement.<\/p>\n
A key argument being made by the union in the Bahamas, to rebut claims by the BTC that it cannot afford the percentage increase being asked for, has been the substantial increase the BTC’s profitability, as reported in Cable & Wireless Communications plc\u2019s half yearly report<\/a>, and the saving being realised through the BTC\u2019s voluntary separation programme, which has reduced employee numbers. However, the views expressed by the BTC have focussed on the need for the company to become more responsive:<\/p>\n
\u2026 to survive and thrive in an ever more competitive market.<\/p>\n
The operating structure must remain \u201cnimble and agile enough to address the customers\u2019 needs at all times; employees must be engaged in a \u201cconsistent and productive way empowering them to shape the business and address customer demands efficiently\u201d and the company must be performance driven\u2026\u00a0 (Source: The Nassau Guardian<\/a>)<\/p><\/blockquote>\n
Unchanged employee expectations?<\/h3>\n
Using a regional player as an example, historically, Cable & Wireless \u2013 when it operated as a monopoly in most of the countries in the region \u2013 was considered a choice employer, as it offered considerably higher compensation packages, relative to other companies across a number of sectors. However, the introduction of competition and regulation meant the company has had to become more streamlined and efficient. But to what extent have employee and public perceptions and expectations changed to reflect the company\u2019s current situation?<\/p>\n
[For those who have not done so as yet, please participate in our on-going IT\/tech salary survey<\/a>: 10 questions, 5 minutes ]<\/strong><\/em><\/p>\n
A final note…<\/h3>\n
It is also important to highlight that the cheaper cost of labour in the Caribbean, in comparison to developed countries, has been a key driver of foreign investment, which is a critical input to many regional economies. With increasing salaries, operating costs increase, which means that many countries will become less competitive within the region, and even further afield.<\/p>\n
Image courtesy of\u00a0Digitalnative<\/a>, flickr.<\/em><\/p>\n
___________<\/p>\n","protected":false},"excerpt":{"rendered":"
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<\/a>Over the last few weeks, there have been regular news reports of employee discontent in a few of the telecoms companies across the Caribbean region. Two of the organisations consistently featured are the Bahamas Telecommunications Company (BTC), a subsidiary of Cable & Wireless in the Bahamas, and LIME in Barbados, where the contention in both instances is regarding pay. The unions are asking for salary increases, but the companies are prepared to offer considerably less.<\/p>\n