Thursday , February 6 2025
Telecom Union Warns of Service Disruptions, Job Losses, and Salary Cuts Amidst Planned Protest

Telecom Union Warns of Service Disruptions, Job Losses, and Salary Cuts Amidst Planned Protest

…Pleads for Understanding on Tariff Increase as Industry Remains on Brink

 

A looming crisis threatens Nigeria’s telecommunications sector as the Private Telecommunications & Communications Senior Staff Association of Nigeria (PTECSSAN) warns of potential service disruptions, job losses, and salary cuts if a planned protest against the recent 50% tariff increase proceeds.

PTECSSAN is imploring the Nigeria Labour Congress (NLC) to reconsider its planned industrial action, arguing that it will further destabilize the already struggling sector.

In a letter addressed to the NLC leadership, PTECSSAN argues that the protest and subsequent industrial action will not only be futile but will hasten the collapse of the sector, further jeopardizing the interests of Nigerian workers and the public.

Recall, Business Remarks reported that, the NLC had recently directed its affiliate unions to mobilize members for a protest on February 7th, 2025, in response to the Federal Government’s approval of the tariff hike. However, PTECSSAN, the union representing senior staff in the telecommunications sector, claims that the NLC’s decision was taken without prior consultation and a proper understanding of the sector’s precarious situation. PTECSSAN argues that this action is misguided and fails to recognize the severe financial distress plaguing telecom operators.

“The impending protest will only worsen the situation,” stated a PTECSSAN spokesperson. “It will not only fail to reverse the tariff increase but will hasten the collapse of the sector, leading to widespread job losses and salary cuts for telecom workers.”

PTECSSAN highlights the crippling effect of the fuel subsidy removal and the Naira devaluation on telecom operations. The cost of Automated Gas Oil (AGO), used to power base stations, has skyrocketed, as has the cost of petrol for field engineers. The fluctuating exchange rate has also made importing essential equipment prohibitively expensive.

“Telecom operators are struggling to survive,” the spokesperson explained. “They are facing unprecedented cost increases across the board, from fuel and electricity to equipment and maintenance. If they cannot afford to operate, they will be forced to shed services, lay off workers, and cut salaries.”

Also Read: Telco’s Tariff Increase and NCC’s Patriotism

PTECSSAN acknowledges the public’s concern over the increased cost of telecommunication services, but argues that the tariff increase is a necessary measure to prevent the industry’s collapse. The union highlights the severe impact of the removal of fuel subsidies on the operational costs of telecommunication companies.

The letter reveals the staggering rise in the price of Automated Gas Oil (AGO), used to power base stations across the country, from N842.25 to an average of N1,441.28 between May 29th, 2023 and January 27th, 2025. Similarly, the cost of petrol used by field engineers maintaining base stations and fiber optic lines has increased dramatically from N198 to N1,030 or higher, depending on location. These engineers, who number in the thousands, now face significantly higher fuel costs to perform their duties.

Furthermore, PTECSSAN points out that the heavily relied upon electricity supply has also become more expensive due to the introduction of banded tariffs, leaving telecom operators with no respite from either petroleum or electricity costs. The union emphasizes that operational offices and service centers are located in urban areas categorized as Band A for electricity tariffs, further compounding the financial burden.

PTECSSAN also highlights the increased difficulty in maintaining and upgrading telecoms equipment. The floating exchange rate policy has seen the Naira depreciate significantly from N460 to 1 dollar before May 2023 to around N1,700 to 1 dollar currently. This makes the importation of essential equipment, priced in foreign currencies, significantly more expensive.

The letter reveals that telecom operators, under the aegis of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), have been warning about the impending collapse of the sector if the tariff increase was not approved. PTECSSAN states that its members, who are privy to the operators’ challenges, corroborate this gloomy picture. In response to these dire warnings, PTECSSAN wrote to President Bola Ahmed Tinubu, advocating for the tariff increase as the only solution to prevent the sector’s collapse.

PTECSSAN further reveals that the tariff increase is crucial for improving the welfare of telecom workers. The union states that while workers in the public sector and other private sectors have benefited from salary reviews due to the new minimum wage law, telecom workers have been excluded due to the employers’ inability to pay. The union fears that without the tariff increase, operators may resort to service shedding or retrenchment to stay afloat, further harming workers and the public.

PTECSSAN’s stance underscores the dilemma faced by the government and industry stakeholders. While the tariff increase will undoubtedly burden consumers, failure to implement it could lead to a drastic decline in service quality and potential job losses within the sector, the telecom union argued.

The union also emphasized that while public sector workers have benefited from minimum wage reviews, telecom workers have been left behind due to the financial constraints faced by their employers. They argue that the tariff increase is essential to enable operators to meet these obligations and avoid widespread labor unrest.

PTECSSAN also points to the potential for service disruptions as operators may be forced to scale back operations to cut costs. This could lead to network instability and reduced service quality for consumers.

“We understand the public’s concern about the tariff increase,” the spokesperson acknowledged. “But we must also recognize the reality of the situation. If we want a viable and functioning telecommunications sector, we need to support measures that will ensure its survival.”

PTECSSAN is calling for dialogue and a more nuanced understanding of the challenges facing the industry. They urge the NLC to engage with stakeholders to find a sustainable solution that balances the interests of consumers, workers, and operators. The union believes that a collaborative approach is the only way to avert a crisis that could have far-reaching consequences for the Nigerian economy.

About Bukola Olanrewaju

Check Also

The Ekehs: Digital Father and Son Shine at Thisday Awards

By Sola Odumosu History was made on the evening of Monday, January 27, in Lagos …

Leave a Reply

Your email address will not be published. Required fields are marked *