MONTREAL – While the union representing installation and technical workers at Expertech this week characterized its contract negotiations with the company as a Bell threat to close the place, that’s not the case, say the companies.
What is happening is that Expertech – like many companies in this industry – is working its way through a restructuring where it has already let many employees go, has plans for more layoffs and some wage rollbacks. In the past year, Expertech has eliminated 200 administrative and management positions.
With the current collective agreement set to expire at the end of November, the company has turned its attention to its techs and overhauling their numbers and their salary structure.
"Bell is facing a lot of competitive pressures and are reducing costs with all suppliers. And since they are a big customer, we listen to them," Expertech spokesman Philip van Leeuwen told Cartt.ca.
Bell is indeed a very big customer, comprising not only 75% of Expertech’s ownership, but also providing 90% of the company’s revenues.
The company was formed in 1996 when Bell spun out 1,600 or so workers into the newly created firm which then provided the telco with installation, design, repair and maintenance functions. A few years later, engineering firm SNC Lavalin bought 25% of the new company.
While Expertech has been restructuring over the past 18 months or so, Bell this fall – because its contract with Expertech runs out in June 2007 – went to tender and received a number of offers from other similar suppliers. "All bids came in at prices significantly below current Expertech prices," said Bell spokesman Pierre Leclerc in an e-mail.
Expertech bid too, at rates well below what it is currently getting, and Bell has indicated they were competitive and that its preference is to continue with Expertech, providing it can work things out with its employees. "Bell said: ‘we like working with you, Expertech, but not at these rates,’" characterized van Leeuwen.
He then explained that the company has single pay scale, where techs receive north of $28 an hour, and an older work force where the average age is 45. The company wants to see many of its older employees retire and then institute a three-tiered pay range where the newest, less-experienced or less-skilled techs would get $11-$17 an hour and the top-end ones, the "network specialists" would not see their pay scale change. There would also be a mid-range of $22 to $27 an hour.
It would mean that 70% of Expertech’s existing technical work force would keep same pay or see a less than 10% cut. Some, of course, would see large pay cuts, even though "in any of these re-classifications, we’d be putting our people in the top end of the scales," said van Leeuwen.
"The good news for Expertech is we were able to establish a competitive pricing model for Bell. But now we have to deliver on it, profitably," he added.
Expertech is also staffed right now for peak periods all the time, meaning during slow periods, certain workers are left with little to do beyond training, said van Leeuwen. During negotiations the company will be looking to scale back some, while adding the ability to hire on contract as needed. "We can then better manage our staff and put in more competitive bids because we’ll have the right people on the job," he explained.
What the restructuring will also do, said van Leeuwen, is make Expertech more cost-competitive and flexible so that it can bid on other jobs beyond Bell and grow its revenue beyond such a reliance on one customer. The cost cutting will mean Expertech can retain the majority of Bell’s business while opening the door to other business it has missed out on in the past "because our prices were too high," said van Leeuwen.
"We’ll be a much more stable company with a sustainable source of revenue and a sustainable source of growth as well."
Face-to-face negotiations with the Communications, Energy and Paperworkers Union have yet to begin and no one is talking strike yet. "I certainly would hope not… We certainly are not there at all," said van Leeuwen.
"Bell clearly prefers to continue to use Expertech’s services, (and) hope their internal issues will be resolved satisfactorily to win a significant new contract," added Leclerc. "If Expertech is not able to provide competitive prices, Bell will then turn to planning a disciplined transition to alternate suppliers in 2007."
"If we want to survive and be a viable company, we have to change," said van Leeuwen.
