Townsend questions TSTT profits

Secretary General of the Communications Workers Union (CWU), Lyle Townsend, has questioned the Telecom-munications Services of TT (TSTT) Profit report for the year ending March 31, 2002 saying that the quoted $439 million is too small a figure.

In an interview with Sunday Newsday, Townsend also called for TSTT to account for approximately $30 million which he says was reported missing from the company. Earlier last week, TSTT was reported to have incurred an after-tax profit of $439 million, which is 18 percent more than the $372 million earned in 2001. According to a publication of the year-end results of Cable and Wireless PLC, TSTT’s London-based 49 percent shareholder, C&W was not as lucky, having registered an annual loss of approximately TT$65 million within the specified period.

Townsend expressed his belief that the $439 figure was “not entirely true, since TSTT could have and should have made more than that.” “TSTT,” he said, “has been losing money through bad economic conditions and practices. However, this figure should be higher.” Townsend’s stipulated figure was approximately $650 million. He also condemned the company for refusing to allow its employees to share in the 18 percent profits which, he asserted, they are responsible for raising.

The union is presently in negotiations for a 17 percent salary increase for the period 2000-2002, in addition to a 33 percent profit sharing programme. Townsend said, “although they made 18 percent in one year, the Union is asking for 17 percent over a three-year period. This does not match in proportion what the company made in one year.” TSTT CEO, Sam Martin declined to comment on Townsend’s statement, saying that he preferred to wait until the company’s shareholders’ met on June 18 before making a statement.