Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/580/7305

From The Socialist newspaper, 20 May 2009

BT say they're sorry

BT's chief executive has apologised to shareholders for the 134 million loss suffered by the company in 2008-2009. "It has been a really difficult year" he says. But nowhere near as difficult as the situation for BT's workforce, facing 15,000 job losses. Bernard Roome, a member of the Communication Workers Union national executive, explains what is really happening.

BT's senior management have failed to secure contracts which will provide them with a profit. Over the past three to five years they've gone round the world agreeing contracts with major companies. Now they have found that although they have been creating revenue, the costs of managing these contracts have meant they have ended up with serious losses, particularly in their Global Services division.

What they have decided to do is use the last quarter of this year, using the present economic recession as the reason, to write down most of their losses, so that next year they will be seen to be in a stronger position.

The reality of the situation is that BT have been more interested in managing the City's expectations than they have been in providing services to customers. If BT was in the public sector, their responsibility would be to their customers - to provide reasonable, inexpensive services for them.

BT have been picking up major contracts for large multinational companies on the basis that they were a global telecoms and IT provider. Although they received what seemed to be considerable revenue from these contracts, the actual costs of running the contracts were either initially not taken into account or escalated as the contracts were implemented.

In the end it's not the senior managers who suffer. They go away, most of them with golden handshakes. The workers have had to manage these contracts - and nobody is saying they haven't been managed well - and their reward is their jobs gone.

The agency staff who will lose their jobs may not be BT employees but many of them are CWU members. While BT can say the job cuts are not all from full time employees in the UK, quite a lot of the agency workers have been working for BT for many years, yet despite this BT are showing no loyalty to them whatsoever.

BT have made a commitment to try to avoid compulsory redundancies. But the danger is that there will be a harsher management style to ensure that more people are managed out of the business anyway.

The jobs will go between now and the end of March next year. But they also announced 10,000 job cuts last year and 15,000 people went. So that is 30,000 jobs gone from BT in two years.

This will always be a problem while the company's prime concern is to give the City and its shareholders what they want. It should be a service industry providing communication and IT services, not delivering profits to the City. While the staff have been told there will be a pay freeze this year, BT still intend to pay a dividend to the shareholders.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 20 May 2009:

We need workers' MPs on a worker's wage


Socialist Party editorial

Swindling MPs are detached from reality


Socialist Party workplace news

Reinstate Rob Williams!

Thousands march for jobs in Birmingham

Visteon workers' victory march


No2EU

Why socialists oppose the EU

No2EU - yes to democracy


International socialist news and analysis

Sri Lanka: The guns fall silent but the tragedy continues

End Gaza blockade


Socialist Party feature

Tiananmen 1989: Seven weeks that shook the world


Youth fight for jobs

Youth Fight for Jobs fortnight of action

Enthusiastic reception for Youth Fight for jobs


Education

Don't close our schools!

Charlotte Turner

Kings College, London

Lewisham Bridge rooftop protest


Socialist Party news and analysis

BT say they're sorry

Welsh-speaking worker bullied by boss

PCS conference gathers

Construction workers walk out

Union organisation necessary to defend working conditions

Workplace news

Fast news


 

Home   |   The Socialist 20 May 2009   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

BT:

triangleBosses' pensions robbery

triangleBT attack on pension benefits

triangleWorkplace news in brief

triangleNHS SOS round-up

triangleThe Socialist inbox

Jobs:

triangleNationalise to save jobs at BAE Systems

triangleBalloting members on the pay cap

triangleWorkplace news in brief

triangleBoeing bust-up threatens thousands of skilled jobs

Pay:

triangleArriva North West bus drivers strike over pay

triangleRoyal Mail bosses block strike - back postal workers

triangleNorth London hospital workers fight cuts and job losses

Global:

triangleExtreme weather events and global warming

triangleGlobal finance: Are those storm clouds ahead?

Reports and campaigns

Reports and campaigns

19/10/17

North West

Arriva North West bus drivers strike over pay

18/10/17

Democratic rights

Conference on state spies: who's watching who?

18/10/17

Leeds

Striking back against sackers' charter at Leeds Uni

18/10/17

Royal Mail

Royal Mail bosses block strike - back postal workers

18/10/17

PCS

Balloting members on the pay cap

18/10/17

Art

'Dazzling' Bad Art show points to socialist future

18/10/17

Council

Sheffield Labour council threatens peaceful protesters with prison

18/10/17

South West Wales

Hundreds turn out for rally aimed at removing west Wales Tory MP

18/10/17

NHS

Uprising to save the NHS!

18/10/17

Socialism

Can you donate to the Socialism 2017 appeal?

18/10/17

East London

No cuts - hands off King George A&E!

18/10/17

North London

North London hospital workers fight cuts and job losses

18/10/17

BAE

Nationalise to save jobs at BAE Systems

18/10/17

Schools

Schools "can't go any further" - stop the cuts: set deficit budgets now

18/10/17

Swansea

Socialist Students 'welcome' Hillary Clinton to Swansea

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle19 Oct Arriva North West bus drivers strike over pay

triangle18 Oct Russia, October 1917: When workers took power

triangle18 Oct Tories torn - bin them now

triangle18 Oct Royal Mail bosses block strike - back postal workers

triangle18 Oct Balloting members on the pay cap

triangle13 Oct The end of the Tories?

triangle11 Oct Nasty party imploding...drive out the Tories

More ...

triangle23 Oct Chesterfield Socialist Party: The continuing struggle for abortion rights

triangle24 Oct Liverpool Socialist Party: The October Russian Revolution 100 years ago to the day

triangle25 Oct Salford Socialist Party: The October 1917 Russian revolution

triangle25 Oct Swansea Socialist Party: Mother Jones - A US labour pioneer

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2