RESPONDING to the announcement of a plan by the Telecommunications Services of TT (TSTT) to retrench almost 500 workers, Cabinet members on Tuesday sought to wash their hands of the matter.
Housing Minister Camille Robinson-Regis, who chairs a Cabinet subcommittee on TSTT, said restructuring was “solely for the company and not the Government.” Public Utilities Minister Marvin Gonzales, who a few months ago denied there were plans to privatise TSTT, suggested the matter was entirely for the board and executive of the company.
“We expect the board and executive management to act in the best interests of shareholders,” Gonzales said. “The government as shareholder should not get involved.”
The stage was set for this hands-off approach some time ago.
In April, the Court of Appeal reserved its decision in a case in which lawyers for TSTT are seeking to get the courts to declare the company is not a public authority. They argue this is because it is not “owned” or “controlled” by the State and is not supported by government funds.
In May, Robinson-Regis appeared to adopt a position not entirely inconsistent with TSTT’s lawyers in a statement on restructuring, although she did say her committee had intervened to the extent of asking TSTT to halt its exercise until the committee could complete its findings.
But she added, “TSTT is not a state enterprise and the Government does not have direct legal control over TSTT. Accordingly, the subcommittee is not in any position to instruct TSTT.”
The State has a 51 per cent stake in TSTT through what is effectively a holding company, with the remaining shareholding owned privately.
Onlookers will thus be forgiven for thinking the use of an ambitious legal argument about the nuances of how we define a state entity – which is due to be ruled on by the Court of Appeal – is not only premature but also comes perilously close to adopting fly-by-night reasoning.
With serious questions lingering about the conduct of TSTT, such an approach also risks making the Government look like Pontius Pilate.
Ministers should be perturbed by the claims made by the Communication Workers Union (CWU) in relation to the way talks unfolded.
On Wednesday, CWU officials said several proposals had been placed on the table, but were ignored. In an emergency court action filed on Tuesday, the union also alleged breaches of severance laws.
There was confusion on Wednesday morning, with some already demoralised workers being reportedly barred from work despite an injunction against their retrenchment. The public is entitled to call on TSTT to explain.
But will the Government, which is in the middle of an election year, continue to pass the buck if TSTT declines to answer the call?
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