The Tribune

IN FEBRUARY, Bahamas Telecommunications Company told Tribune Business that it was ahead of its operating projections for 2012 because its new owners -- Cable and Wireless Communications -- had generated cost savings faster in its first three months in the newly-privatised company than had been anticipated. However, CWC warned that it was "too early to start popping the champagne corks". Tim Pennington, chief financial officer of CWC, which holds 51 per cent of BTC, said that BTC's revenue and potential growth was "unchartered territory". In his opinion, the London-based telecommunications company would only fully understand BTC's true earning ability after the end of the 2013 financial year. "I think the revenue opportunities and the growth opportunities are uncharted territory for us," Mr Pennington said. "So we still remain bullish on the prospects for the Bahamas, but we shouldn't underestimate the task facing us," he told Business editor Neil Hartnell. "This is a business that has been under state ownership for a long time. There's still an awful lot to do to get things up to international standard. I think we've made a very good start, but it's too early for us to be popping the champagne corks and taking a lap of honour on this one. "If we're having this conversation at the end of next year, I think we'll be feeling a lot more relaxed that we understand the potential and what the run rate of the business is." But Bahamian unionists have only grasped the fact that the company is pleased with itself because in its first months of operation it is ahead of projections. This was mainly due to cost savings -- in part because staff took early severance packets and left. However, union members, having no conception of how to operate a business, have not taken into account that it is too soon to celebrate because there is still so much to do to get staff and operations up to international standards. Until this is done -- and knowing that BTC has to be prepared for competition -- no one can project whether the company will live up to expectations. Therefore, at this early stage of rebuilding a crippled business, belt tightening is still in order. Should the business continue to grow and prosper, only then can the champagne be ordered. Despite this, the union is agitating to participate in the perceived bonanza. It has spurned a new industrial agreement. Denise Wilson, Bahamas Communications and Public Officers Union secretary general, said his members "want different percentage rates than what they are offering. They are offering a four per cent increase. We find that repugnant and I am repulsed by the fact that they are offering such a small amount, given the fact that they have gone on record saying that the company has done so well in such a small time". People like this will always remain employees, they just don't understand business. Reminds us of when the PLP first came in and young Bahamians were anxious to start their own businesses. In many cases when 5pm came, they emptied the cash till into their pockets and went home. Nothing was put aside to build the business. Needless to say, they failed as entrepreneurs and went back to being employees. We hope that these short-sighted people will wake up and help get this company on firmer ground. There is tremendous potential. However, the union can wreck it.