REKLAMA

Strike's no stress for TP SA

2005-04-18 09:24
publikacja
2005-04-18 09:24
Trade unions are protesting the firm's plan to cut 2,800 jobs from its workforce of 31,000, arguing that the company should find other savings to offset falling fixed-line sales.

TP SA has been struggling to transform itself from a lumbering communist-era monopoly and slim down in the face of competition from mobile operators and independent fixed-line players.

"A small proportion of TP SA employees took part in the protest, which did not have any negative effect on customer service or the company's operations," TP SA said in a statement.

The company repeated its allegation that the strike is illegal, which the unions deny, and warned that future protests could harm customers and reduce service quality.

But analysts expect little impact from the current round of protests, which include a hunger strike and Monday's one-hour work stoppage.

"From what I've seen in the past, strikes don't seem to affect telecoms that much ... it doesn't seem to be something that should cause too many problems," said CA IB analyst Anna Bossong.

But BRE bank analyst Michał Marczak said that while the protest may not hit the company operations, the strength of union opposition and their ability to reduce the planned number of cuts might be a warning sign.

"This shows that opposition from the unions is stronger than expected, and raises the question of what they'll do in the next round of cost cuts - because we know they'll have to cut further," Marczak said.

He added that based on the most recent figures on the job cut program, TP SA might have to increase the zł.130 million reserve it created late last year for severance payments.

France Telecom owns 47.5 percent of TP SA and fully consolidates its financial results. (Reuters) J.T.



The country's dominant phone operator, TP SA, was hit by a one-hour strike early last week but analysts agree that the industrial action had little effect on the company's operations.
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