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TUESDAY, NOVEMBER 20, 2018
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GARFIELD SINCLAIR
BTC hits ‘red line’ on client, value erosion By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE Bahamas Telecommunications Company’s (BTC) chief executive says the company has reached “the red line” on mobile subscriber loss and value, and is readying the fight back. Garfield “Garry” Sinclair told Tribune Business that BTC must “reorient” itself and its two trade unions to be more “customer centric” as it prepares to roll-out some “very compelling” consumer value propositions (CVPs). “One of the sort of commercial muscles that have sort of atrophied when we were the sole provider, particularly of mobile services, is customer centricity. You have to be customer centric in an intensely competitive environment. The first thing we have to do is reorient everyone in the business, including my union partners,” he said. “My union partners are clearly focused on their colleagues, and I have made it clear that my job is taking care of my colleagues. As a commercial imperative, the first line of business is taking care of customers. Customers have to be at the centre of what we do, and so we have to reorient the business to do that. “We have to put the customer first, and that is what I am trying to inculcate back into our DNA. That extends now to developing customer value propositions. We have to ask them what they want and then develop customer value propositions accordingly.” BTC’s subscriber numbers at September 30, 2018, support claims by rival Aliv to have seized more than one-third of all Bahamian mobile market subscribers. BTC was shown to have 228,300 total subscribers at that date, with 89 percent of 203,000 of that client base concentrated in pre-paid customers.
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BTC’s privatisation ‘a colossal failure’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE Bahamas Telecommunications Company’s (BTC) privatisation “has been a colossal failure”, a union leader blasted yesterday, adding: “Aliv’s eating our lunch with ease.” Dino Rolle, the Bahamas Communications and Public Officers Union’s (BCPOU) president, told Tribune Business that all BTC staff - not just his members - viewed as “extremely offensive” warnings by the company’s chief executive that unproductive employees should be “anxious” over their job security. The line staff union’s chief argued that Garfield “Garry” Sinclair lacked sufficient evidence to judge which BTC employees were failing to add value because the carrier had lacked performance management metrics “for the last three to four years” prior to the recent introduction of its Pearl system. Mr Rolle, who yesterday
UNIONISED employees were yesterday placed on “work to rule” at most of Nassau’s major resorts in a move likely to raise fears for this week’s key Thanksgiving holiday weekend. Darrin Woods, pictured, the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) president, told Tribune Business that the move was sparked by Atlantis’ decision to implement a new shift system impacting some 400500 housekeeping staff as well as a “12-point” disciplinary system. Arguing that negotiations with the Paradise Island resort had proven fruitless, despite the union engaging in talks since late September, Mr Woods said it had decided to take a stand due to concerns that other hotel properties are likely to
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* Move results from Atlantis dispute * Shift, discipline ‘points’ to affect 500 staff * Will impact multiple Nassau resorts
ATLANTIS PARADISE ISLAND follow Atlantis’ lead. He charged that Atlantis’ move also breached the industrial agreement that the union and the Bahamas Hotel and Restaurant Employers Association (BHREA), the hotel industry’s bargaining group, are treating as still in effect despite expiring in 2013.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Mr Woods described the situation as an ominous indication of the approach the BHREA may take over negotiating a new deal, adding that the union could no longer hold back members who had wanted to take action industrial action from early September. The “work to rule”, which means hotel union members will stick rigidly to their job descriptions and “not go beyond the call of duty, extends beyond Atlantis to all BHREA member properties. These include the Four Seasons Ocean Club; the British Colonial Hilton; Melia Nassau Beach; and Lyford Cay Club, although Baha Mar will not be impacted
and Mr Rolle said this had resulted in a constantlychanging strategy just when it needed continuity/stability to ready for competition and the loss of its mobile monopoly. Disclosing that Mr Sinclair had made no secret of his intentions to “cut dead wood” and “share the costs” of BTC’s call centre with other such CWC facilities in the Caribbean, the BCPOU chief argued that meetings with the new chief executive had “not been productive”. The union, given that its industrial agreement expired 20 months ago, wants Mr Sinclair to “bring to the table” a realistic proposal for a new deal something it says he has yet to do. And Mr Rolle argued that, rather than reverse top-line decline, Mr Sinclair
Winter tourism fears on union ‘work-to-rule’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Dingman hit by $863k award on eatery collapse A LYFORD CAY resident’s former business partners have obtained a collective $863,000 default judgment against him over the collapse of his Nassau restaurant empire. Judge Naomi Buchwald, sitting in the south New York federal court, entered the award against Jamie Dingman, son of late world-famous entrepreneur, Michael, after he stopped defending the fraud and breach of contract claim brought by Erik Gordon and Ryan Giunta. Gordon was awarded $492,064, some $392,000 of which is pre-judgment interest, while Giunta obtained $370,727 - a sum that was also inflated by interest. The duo now have the task of enforcing the ruling against Mr Dingman, which means they may have to seek recognition of the judgment in The Bahamas by the Supreme Court. Judge Buchwald ruled that the duo had “plausibly alleged that Dingman, acting both on his own behalf” and his failed Nassau restaurants, “has defrauded them and breached certain agreements with them”. While agreeing that Gordon and Giunta were entitled to a default judgment because Mr Dingman had stopped defending the case, despite being served with all necessary court papers, the judge trimmed the duo’s damages claim after finding they were “entitled to less than all of the relief sought in their papers”. Judge Buchwald found Gordon was seeking to recover the same loss through “four distinct legal theories”, when only one would do. And Giunta failed to notify Mr Dingman of his $2,500 claim for “unreimbursed expenses”, resulting in that being thrown out. Their bid to obtain legal costs from Mr Dingman was also denied. Mr Dingman’s efforts to build a Nassau-based restaurant and hospitality business through his Out West Hospitality vehicle included taking over Traveller’s Rest in western New Providence via a lease arrangement. That venture failed and the property shut again, until members of the Bain family, its owners, reopened it again. He also leased two units
* Union chief: Aliv’s ‘eating our lunch’ * CEO’s productivity warning ‘extremely offensive’ * Claims no system to measure employee value
FROM left: Dino Rolle, BCPOU president; Philip “Brave” Davis; and Ricardo Thompson, BCPMU president. received backing “shrunk not only the workfrom Bernard Evans, his force but BTC’s ability to predecessor as BCPOU compete” with upstart rival president, blamed BTC’s Aliv, which has already plight on Cable & Wireless seized more than one-third Communications (CWC) mobile market share in just failure to properly prepare two years since its Novemthe incumbent carrier for ber 2016 launch. competition and find new BTC and CWC are now growth opportunities since both on their fourth chief acquiring a controlling executive since the former’s interest in the company privatisation, with the latter via its 2011 privatisation. now owned by Liberty He added that CWC had Latin America (LiLAC),
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Auto industry wants ‘more horses in race’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE auto industry has held talks with the Government about adjusting the 25 percent duty threshold to enable more dealers to have “a horse in the race”, it was revealed yesterday. Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business that the industry was hoping the Minnis administration will amend the 1.5cc engine size threshold to allow more vehicle models to qualify for the lower excise tax rate - a move it believes will benefit consumers as much as the sector. He added that the industry was looking for the changes to be introduced in either February’s mid-year budget or the 2019-2020 budget that must be
* Presses govt on expanding 25% duty category * Hopes for further change in mid-year, next budget * Consumers enjoying $10,000 slash in price unveiled by end-May, with the reduction from the typical 65 percent tax rate slashing as much as $10,000 off new vehicle prices. Confirming that dealers with vehicle models of 1.5cc or less had already been reaping the benefits, Mr Albury told this newspaper: “For those who have product at 1.5 litres, yes, we’ve experienced a boost, but there are those dealers that have none and they’re experiencing misery. “There has been some consultation with the powers that be to consider some adjustment or another category of vehicles. We’re requesting that there be some adjustment. A lot of dealers have vehicles with
1.6 litre engine capacity, so either bump it up a little bit or create another category for 1.5cc to 2cc vehicles with some adjustment there. “That way all the dealers have a horse in the race, and consumers would have a lot more choice. It would enhance new car sales and the Government would realise more revenue from the industry. Whether it’s the mid-year budget or fullyear budget I don’t know. It’s up to them.” Mr Albury said the Government had indicated it wanted to see the full impact of the 2018-2019 budget reforms take effect first before making any further adjustments. These moves, which took effect
from July 1, cut the excise tax rate for vehicles with engines below 1.5cc to just 25 percent, compared to the previous 65 percent. The cut was enacted to make new, smaller and more fuel efficient and environmentally-friendly vehicles more affordable for Bahamian consumers, and Mr Albury said the early signs were encouraging - but only for dealers with product at or below the 1.5cc threshold. “We’re only three to four months on,” the BMDA chief added, “but I can say that it did give a boost to sales for those with product at 1.5 litres, but it has
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