IBEW Local 339 (Thunder Bay ONT CAN) Faces Uncertainty With New Telus-TBay Tel "Partnership"

TBayTel, Telus sign letter of intent

By Jim Kelly - The Chronicle-Journal August 24, 2005

Now, it’s official.

The second largest telecommunications company in Canada could soon be involved in a partnership with TBay Tel.

The first step toward that alliance took place at a news conference Tuesday when the TBayTel municipal services board of directors announced it had entered into a letter of intent with Telus Communications.

It wasn’t exactly earth-shattering news.

The potential deal was reported last Thursday in The Chronicle-Journal in a story which stated the signing of the letter of intent was imminent. However, this is not a done deal.

Board chairman Don Paterson told a small gathering of community leaders, board members and politicians at the TBayTel Service Centre that the letter of intent is not a binding agreement between the two organizations.

He, said it does not rule out TBayTel requesting letters of intent from other telecommunications companies. This process is expected to take about eight weeks.

If it’s determined during this trial period that this is not a match made in heaven, then TBayTel could look to SaskTel and MTS of Manitoba as potential partners. Paterson also put the rumours to rest that TBayTel is for sale.

“TBayTel is not for sale,” he said. “We know the value of TBayTel as an integral economic engine in our community.”

Paterson said the letter of intent allows the management of both companies to define the level of support required to enable TBayTel to provide a full range of broadband, wireless and Internet services in Northwestern Ontario.

Also, if the partnership becomes formal, the financial contribution to the City of Thunder Bay will continue. “The only thing that will affect that is the revenue stream,” Paterson said.

He said the plan to strengthen TBayTel’s position in the marketplace and to take advantage of the evolution in the telecommunications industry began in April when it was decided a strategic alliance with a “strong, national industry leader.”

Paterson said the idea was to “enhance TBayTel’s momentum as a communication services company.” Paterson was reminded that just last week when asked if there was a deal with Telus in the works, he replied there was nothing. “And there wasn’t at that time,” he told reporters.

Paterson said if an agreement with Telus is made official, Telus will have no say about union contracts or management positions.

“TBayTel is owned by the city so only city council can make those decisions.”

However, the business manager for Local 339 of the International Brotherhood of Electrical Workers said he is nervous about the TBayTel-Telus liaison.

“You’re always nervous going into the unknown,” Jim Howie said from Ottawa.

“We’re headed for more changes and our employees have already experienced a lot of changes,” he said.

“Our concern is whatever is done is for the good of TBayTel.”

Paterson was asked if the sacking last week of TBayTel chief executive officer Phil Comrie was linked to the fact Comrie did not agree with the direction the company was taking with the letter of intent.

Paterson would only say that Comrie “did not share a parallel vision with the board.”

Comrie was replaced as acting CEO by Ken Esau, TBayTel’s vice-president of field operations.

“Our customers want the full range of technology and they deserve it,” Esau said.

“The benefit of a strategic alliance for TBayTel is paramount. I look forward to the next step in out evolution.”

Telus is the largest telecommunications company in Western Canada and the second largest in Canada with $7.9 billion of annual revenue, 4.7 million network access lines and 4.1 million wireless customers.

TBayTel is the largest independently owned telecommunications company in Canada.

It has the region’s largest digital cellular coverage and extensive products and services that include data, voice and wireless.