News Title : BTRC unhappy, employees fear job cut

News Date : 2015-11-08

- Shamim Jahangir
Employees of both Airtel and Robi are worried over their jobs as the procedure of merger of the two leading mobile operators is in progress now. They are also concerned over the benefits that the probable job losers might be offered under the Detailed Voluntary Retirement Scheme (VRS). Meanwhile, the tele-regulatory authority has expressed anger as the authorities of Airtel and Robi failed to prepare proper proposals over the status of their existing officials and employees on their merger. Robi Axiata Limited and Airtel Bangladesh Ltd had been asked to submit nine types of documents like spectrum merger scheme and detailed voluntary retirement scheme etc. The officials and employees fear job cut as many of them faced the situation during taking over WARID Telecom International LLC by Airtel Bangladesh Limited in 2010. During the take over process, the number of employees of Airtel was brought down to 700 only, from 1500. Besides, dozens of employees joined Airtel leaving Robi with better opportunities. Presently Airtel has total 487 officials and employees, as a good number of officials have recently left the operator in fear of job cut. Besides, the Robi Axiata Limited is now operating its Bangladesh venture with 1800 employees. After proposed take over of Airtel, the Robi might go for job cut to minimize its operational cost, insider said. To update their merger plan, the Robi and Airtel will place their merger plan again before the newly-appointed BTRC Chairman Shahjahan Mahmud today (Sunday). Both the cell-phone operators have already held internal meetings with their top officials, concerned sources said. During the meeting, some top officials of the Airtel have shown interest to secure their jobs depriving others, sources concern said. BTRC senior Assistant Director SM Golam Sorwar Thursday last issued official letters to the Malaysian company Robi and Indian Company Airtel. The letter reads, “I am directed to inform you that the commission has perused the documents submitted by Robi and Airtel…the documents are not prepared as per the direction of the BTRC.” The commission asked to submit spectrum merger scheme again as well as numbering amalgamation scheme, it added. It also asked to produce the services merger scheme and the specific plan of each company for protection of jobs of all the employees with the Detailed Voluntary Retirement Scheme (VRS) of Airtel for all the employees who are not interested to join the proposed merged company. Besides, the commission also asked the companies to submit the documents regarding current share structure and share capital of both companies. The updated VAT and Tax clearance certificate of both companies would also be submitted again, the directive said. The BTRC also asked the companies to submit audit reports of both the companies for last three years. The Airtel and Robi are now discussing the merger ranged between US$1.0 billion and $1.50 billion, sources concern said. The Airtel took over WARID Telecom International LLC here only $100,000 only with subscribers based now stands one crore. “This merger should be forwarded by conducting rigorous due diligence in terms of fiscal, operational and considering the benefit of the stakeholders like employees, investors, technology, the protection of consumers interest and contribution to the society,” Dr Jamaluddin Ahmed, general secretary of Bangladesh Economic Association (BEA) told daily sun yesterday about Robi-Airtel merger process. The BTRC should form an independent professional expert committee to supervise the proposed merger accurately, Dr Ahmed who is also telecom expert. Bangladesh has already experienced one and half dozen of merger in energy, telecom, cements and bank sectors with following best example for ensuring employees interest. In late of 2013, Grameenphone introduced Voluntary Retirement Scheme (VRS) for permanent employees with minimum of consecutive five years service length. Besides, the Samsung Bangladesh has also paid one month gross for completion of six months as well as 50 percent benifit for less than five year of services but completed a year, sources concern said. Malaysian Axiata Group Berhad (Robi) and Bharti Airtel Limited (Airtel) have formally sought permission from Bangladesh Telecommunication Regulatory Commission (BTRC) to merge Bangladesh Business. After merger, the Robi shares would be 75 percent while the Airtel 25 percent, Supun Weerasinghe, Managing Director and Chief Executive Officer of Robi Axiata Limited, and PD Sharma, Managing Director of Airtel Bangladesh Limited, in a joint official letter informed the BTRC on September 17, 2015. merger, the entire spectrum assigned or acquired by Airtel and Robi will vest in Robi in accordance with law and shall be used by the amalgamated entire (Robi) as part of the assets and resources of the merged companies in accordance with the usual merger procedures under the provisions of the Companies Act, 1994, the letter read. The companies accept that the necessary changes and arrangements in numbers shall be attained without cost of customers, the letter said. Robi has 27.9 million subscribers while the Airtel 10 million, officials of the telecom operators told daily sun. According to BTRC, there are 130 million cell phone subscribers in Bangladesh. The Grameenphone Ltd, a sister concern of Telenor Group, has secured top list that grabs 54 million subscribers. After merger, Robi and Airtel will jointly grab second position of Bangladesh business operation.

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