SLT in another controversial deal

Telecommunication trade unions are accusing the NTT-controlled management of Sri Lanka Telecom (SLT) of making a series of controversial decisions even as the Japanese company prepares to give up management control by August. The joint Telecommunication Trade Union Front said hasty decisions to outsource call centres, new recruitment and undue promotions would adversely impact on SLT’s operations.

The allegation came amidst a Supreme Court interim ruling on Thursday, suspending the proposed sale of NTT shares in SLT to Maxis of Malaysia. The interim ruling was issued after former Minister Sripathi Sooriyarachchi petitioned the court, alleging abuse of power and misappropriation of public resources.

A union spokesman said the management had taken a decision to hand over SLT call centre operations to a subsidiary company, without following tender procedures while Convergys, a private firm, was picked to handle SLT’s billing functions. According to a letter sent by SLT Chief Executive Officer Shoji Thakahashi to all SLT executives, a copy of which was obtained by The Sunday Times, the aim of this outsourcing arrangement is to turn this aspect of the business into a Business Processing (BP) unit and as a stand alone profit centre.

Only two companies, Servion and Convergys, tendered bids of Rs. 35 million and US$ 635,000 to take over SLT call centres operating in Colombo, Anuradhapura, Kandy and Galle. Convergys, the highest bidder, was selected without following transparent and proper procedures, the union alleged.

A majority of the 32 telecom trade unions are up in arms against the NTT management for taking this decision as its period of contract is ending in August this year. Union leaders are of the view that the call centre operations across the country are undergoing a phased improvement and there was no need to transform them into a BPO call centre.