Aretha Welch awelch@trinidadexpress.com
If you were a manager at State-owned Telecommunications Services of Trinidad and Tobago (TSTT) in 2005 your bonus would have been an estimated $18,000. Within just four years it would have increased to an estimated $169,000.
For the average worker in Trinidad and Tobago, salaries have barely budged, however.
Though the representative union, the Communications Workers Union (CWU) is up in arms about these bonuses, the telecoms company is remaining mum on the issue, apart from saying the documents were submitted before the Industrial Court in an ongoing dispute with the CWU.
The company has declined to comment on their decision to increase the bonuses they pay out to managers and executives by some 12 fold in the last four years.
Documents obtained by the Express showed that TSTT’s management bonus bill for 2009 stands at an estimated $72 million, up from $6 million in 2005, when the company first decided to pay management bonuses. The company only employs 25 per cent more managers than it did in 2005, that is the equivalent of 124 persons. While TSTT did verify that the documents were legitimate, the company said it would not comment as it did not want to jeapordise any of their matters before the Industrial Court.
The documents which the Express obtained last week, also showed that TSTT’s revenue has increased by an estimated 20 per cent since 2005, up from $2.5 billion, to just over $3 billion in 2009. This shows a disconnect between revenue increases and bonus increases.
While economists and labour leaders have said the recent increases in inflation have eroded citizens’ buying power and unionists have pounded the pavement for significant salary increases, statistics from the Central Statistical Office show inflation has only increased by a total of 42 per cent in the last four years.
However, economist Jwala Rambarran explained, ’A bonus is not to compensate for purchasing power. These bonuses are supposed to show that persons have performed above and beyond what was expected of them.’
When asked to comment on the significant increases which were doled out to their managers, despite the fact that TSTT’s revenue increase was not as significant and the company has said they have frozen managers salaries since 2005, the company declined to comment, saying only TSTT’s official position is that it is not in a position to respond.
TSTT declined to respond as to whether or not the company’s productive capacity and service to consumers had increased enough to justify the 12 fold increase it paid to managers in their bonus packages.
The CWU, representing many lower and mid level employees at TSTT, described the paying out of these funds to executives as ’gross mismanagement.’ Union president Joseph Remy also said it was irresponsible for TSTT to take this decision while they still had outstanding negotations regarding terms and conditions for workers.
Figures show that TSTT employed 328 top level professionals, department heads and executives in 2005. The amount of money the company forked out in bonuses at that time was $6,005,277. This equates to an average of $18,308 per manager.
However, by 2009 with 452 top level professionals, department heads and executives on the payroll, the company found itself forking out some $72,299,447.
This works out to an average bonus of $159,954 per manager. The average bonus paid increased eight fold in 48 months.
Though contacted early last week, Public Utilities Minister Mustapha Abdul-Hamid, had up to press time yesterday declined to comment on whether or not any studies into TSTT’s productivity had been conducted. While TSTT is not run on taxpayers funds it does fall under Abdul Hamid’s purview and is 51 per cent State-owned.