MTS Talks with TEAM at Critical Stage

As is often the case with media coverage of labour disputes, a recent Winnipeg Free Press story on the current negotiations between Manitoba Telecom Services (MTS) and one of the unions (TEAM) representing MTS employees didn't provide all the insight it could have into what's really happening - and the motivation for it. Manitoba Federation of Labour President Darlene Dziewit tried to put the record straight in a letter to the editor. The text of that letter follows.

I'd like to flesh out your story on contract bargaining between Manitoba Telecom Services and its employees who are members of TEAM IFPTE Local 161. I note with interest that MTS claims it is interested in concluding an agreement with the TEAM membership, without a lockout being imposed by management. If we can accept that, its one of the rare examples of MTS putting the good of its employees and customers ahead of squeezing every possible penny out of what used to be a strong, publicly owned telephone utility.

Since the utility was privatized by the Conservatives under the leadership of Gary Filmon (yes, the same Gary Filmon now sitting on the MTS Board of Directors), close to 1500 jobs have been lost at MTS. MTS has sold off or contracted-out work to other provinces and overseas, sending what used to be well paid jobs in our province's communities elsewhere, along with the substantial economic benefits they sustained.

TEAM's goal in these negotiations is to create a quality workplace environment. This includes effective job security - keeping highly skilled workers and quality jobs in Manitoba. A major element in the quality of work-life is access to a good quality pension plan.

MTS is bent on eventually replacing the existing defined benefit pension plan (which sets exactly how much a worker will receive each month after retirement) with a defined contribution plan which only describes how much is contributed to the pension plan (monthly pension income is determined by a wide variety of factors, many of which can't be forecasted or planned for).

The upshot is MTS will reduce its pension costs and increase its already substantial profits by making retirement for its employees a great deal more uncertain and perilous.

The MTS strategy dovetails with a growing trend in Corporate Canada to put at risk the future of working families, on the altar of marginally increasing dividends and executive bonuses. How is this a good idea?