GBC, GTV to be merged on February 28
Guyana Chronicle
January 25, 2004
THE Guyana Broadcasting Corporation (GBC) and the Guyana Television Corporation (GTV) are to be merged into a new entity on February 28.
We publish below an information brief issued Friday by the Privatisation Unit with respect to the proposed merger.
“Since the Government announcement of the proposed merger with GBC and GTV, the Privatisaiton Unit on behalf of the Government and the respective companies, has been negotiating with the CCWU, the bargaining agent for approximately 111 persons at GTV and GBC of a total permanent employment of 170 persons at the two establishments. Some progress has been made with these negotiations, largely on account of compromises by the Government. At the current time, one fundamental difference remains between the parties and this relates to continuity and the related matter of whether severance should be payable at the time of the merger.
Objectives of Merger
The merger is proposed to effect operational and financial improvements and to position the new entity to recapitalise and be capable of withstanding an increasingly competitive environment. This will be accomplished by:
1.Reduced operational costs from consolidating operations at Homestretch Avenue and the resulting savings on occupancy cost;
2.Reduced employment costs from redundancies resulting from consolidation and improved efficiency and economy;
3.Capital investment to modernise the radio and television resulting from operational savings and proceeds from the sale of the High Street property and other residual assets.
Employee Arrangements Going Forward
It is natural that workers are concerned about the merger and the uncertainty that results from redundancies. This has contributed to the protracted nature of the discussions with the CCWU. The Government’s current position in relation to the merger is as follows:
1. At the date of the merger (February 28th, 2004), the assets and liabilities of GTV and GBC will be transferred to a new company.
2. By the date of the merger, all employees will receive the following:
a. Severance checks calculated in accordance with the respective CLA or such better terms as may be agreed by the CCWU and Govt.; severance letters will be issued next week
b. Temporary Contracts for a period not to exceed six months at the same salary as of the date of the merger and an eight per cent payment in lieu of benefits; copies of the temporary contract will be issued along with the severance letters, and those persons seeking to work with the new entity will be required to sign these letters within two working days.
3. Shortly following the merger, internal advertisements will be placed for 133 positions (including Linden), which will invite all employees to apply. All positions in the new organisation will be guided by the following
a. New Organisation Chart showing all positions
b. New Salary and Grade Chart
c. Job Description providing job objectives, qualifications, scope of work, grade in organisation, and such other relevant details as may be available
4. Once employees on temporary contracts apply, these persons will be interviewed by a Panel consisting of senior persons of the new organisation and the Privatisation Unit. Selections will be made in a transparent manner.
5. Employees offered permanent jobs can expect to have these jobs offered within 3 months of the merger or the soonest date thereafter.
6. Those position not filled internally will be advertised publicly and if suitable applicants are not available publicly, persons not yet offered permanent employment, may be placed in those positions.
Differences with the CCWU
The CCWU has argued that severance should not be paid at the date of the merger and that workers should be continued in the new entity. The CCWU has put forward proposals on the following:
1. Approximately 24-34 persons may be willing to leave at the time of the merger; we should give these persons voluntary severance.
2. Remaining persons can be placed in the new organisation by mapping them to similar positions in the new organisation; severance can be paid to persons if they do not perform during the transition period; the Union had earlier proposed that persons had the option during the transition period of receiving severance at their option, but this was not accepted.
The Government views the CCWU as well intentioned but not practical, without allowing for the payment of severance, for the following reasons:
1. Persons may be placed in different positions that they may be dissatisfied with;
2. Persons may be given different responsibilities which may be higher or lower than that previously enjoyed—some persons may again be dissatisfied;
3. Persons may have different supervisors and managers and may find conditions of work less than acceptable; pay scales and benefits may be better or worse (taken as a whole) and can lead to dissatisfaction when compared to the previous position
It is difficult to merge two different organisations with different pay scales, grades, job descriptions, work conditions, and benefits. The Government has proposed instead that all employees be paid severance, and be given preference in obtaining permanent employment in the new organisation. Details of the new organisation structure have been shared with the CCWU and will be posted for all employees. There has been a request for severance at the date of the merger from many persons and it believed that this is fair based on the CLA of the GBC (which states severance is payable in the event of amalgamation) and also after consideration is given to the above. We have articulated all the reasons for severance to the CCWU. We have also received petitions from the GTV workers that are outside of the Bargaining Unit, all seeking to have severance at the date of the merger.
Government is not looking to change the CCWU and will seek to flow through the CCWU as the Bargaining Agent and sign a new CLA at the end of the transition period, which shall enshrine the new organisation details, and provide for a pension plan and medical scheme for all employees. GTV/GBC/and the new entity will seek to maintain working relations with the CCWU during the period preceding the merger and thereafter.
GoG and the CCWU will seek to settle the proposed improvements to the severance package put forward by the CCWU. We expect that this will be settled within the next week.
Conclusion
These will be difficult times for all. Given that GTV and GBC staff amounts to 170 persons, and that 24-34 persons are likely to leave at the date of the merger, and that 133 positions are available in the new organisation, the chances of employment of those remaining should be good. Government is paying severance because the new organisation terms and conditions, positions and responsibilities, and overall policies and procedures will likely be different. It is only fair that persons be paid their severance.
Government will seek to ensure that as many of the concerns of employees are addressed and to seek your support for this transition, which should offer many improvements, with the efficiencies and economies that a modernised radio and television company can offer.”