Published On: Thu, Jun 4th, 2020

TelEm and union reach agreement on cost-cutting measures

TelEm Satelite Dish Head Office Pond Island - 20200604 JH

POND ISLAND — After what can be described as a short but intense back and forth of letter correspondences, TelEm Group and the St. Maarten Communication Union (SMCU) has reached an agreement regarding cost-cutting measures in fulfillment of the request of the government of St. Maarten for the government-owned company to do its share of cost-cutting to satisfy the conditions for liquidity support from the Dutch Kingdom government.

The agreement, which was signed at 5:05 pm on Thursday, June 4, regards the “12,5% Cost Cutting Negotiations between Management and Union” and reads as follows:

As a result of the negotiations that took place today, June 4th, 2020 between Management and Union regarding the request of the St. Maarten Government to propose a 12,5% Personnel Budget Cuts as of July 1, 2020, Parties agreed to the following personnel budget proposal cuts:

Cutting of:

– Uniforms
– COLA (Cost of Living Adjustment)
– 75% of both Traveling & Training
– All gifts, teambuilding events and parties

Postponing of the following:

On-call list to be reduced to essential personnel not exceeding Nafl. 153,472.

The total reduction results in an overall 10.93% reduction in budgeted personnel expenses for the Company.

Parties agreed to the above mentioned on June 4, 2020.

The agreement is signed on behalf of the St. Maarten Telecommunication Operating Company N.V. by its Chief Executive Officer, Kendall Dupersoy. On behalf of the SMCU, the agreement is signed by Ludson Evers, President; Sherman Serastis, Secretary; Nataly Frans, Secretary; and Mario Gumbs as Board Member.

The agreement was signed at 5:05pm according a time stamp on the agreement. This was confirmed by SMCU President, Ludson Evers.

Agreement TelEm with Union on Cost-Cutting Measures

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Relevant links:
Dupersoy: “Forensic audit would bring TelEm to a screeching halt”
Opinion piece: The bottom line
Cost-cutting measures become bone of contention
Letter State Secretary Knops to Dutch Second Chamber dated May 19, 2020
GEBE Internal Notice – financial aid conditions
Letter June 2, 2020, to Government-owned companies re cost-cutting measures
TelEm Response letter to SMCU Cost-Cutting Measures
Union wants forensic audit at TelEm reinstated
SMCU union rejects TelEm’s pay cut proposal
Reply letter SMCU union to TelEm
Financially Troubled TelEm
Telem sends letter to union; all salaries to be cut by 12,5%
TelEm Letter to Union re decrease labor conditions
Stimulus plan asks Netherlands for 254 million