As a result of the impact arising from deregulation in the Bahrain telecommunications industry, combined with significant advances in the deployment of new generation technology, Batelco continues to review its operating model and staffing requirements on an ongoing basis. The Employee Redeployment Programme (ERP) was developed out of necessity to sustain Batelco's competitive position and adapt to the changing Bahrain market requirements.
Batelco appreciates that the recent reduction of staff numbers is an emotive issue, and understandably this has generated much interest in the media. Disappointingly, however, many of the stories published include inaccuracies which only exacerbate the situation.
Therefore, we are providing the following facts and figures, relevant to the ERP, with the aim to dispel any confusion.
Batelco employs 1496 Bahrainis, representing 93% of its entire workforce. (figure correct as of 31st May 2008)
Batelco employs 114 expatriates, comprising of 18 different nationalities. (figures correct as of 31st May 2008)
The 44 staff who received end of service notices in May represent 2.9% of the Bahraini workforce.
The Employee Redeployment Programme (ERP) is only applicable to Bahrainis. The reason why it is not extended to expatriate staff is that expatriates are employed on a contract basis. If and when Batelco no longer requires the services of an expatriate their contract is either not renewed or terminated prior to its expiration, in accordance with its terms.
During the past 12 months, the contracts of 20 expatriates were not renewed and/or terminated. This represents 17.5% of the expatriate workforce.
Fair Processes
All vacant roles within Batelco are open to Bahrainis. There are no restrictions and vacant positions are filled according to consistent, fair and transparent policies.
The majority of available positions are advertised internally and filled by current staff.
Batelco only looks outside of the company if a suitable candidate is not found within its ranks.
Additionally, Batelco only employs an expatriate if no qualified Bahraini can be found. Strict policies and guidelines are in place and continually reviewed by Batelco Human Resources Department.
Batelco abides by laws of the Kingdom
Batelco, identical to all companies and individuals in the Kingdom of Bahrain has the right of appeal within the laws of the Kingdom. The Company strictly abides by the law which embodies the Labour Laws.
Batelco will abide by the final decision of the courts with regard to the ERP issue.
Rollout of Batelco ERP
Considerable time was spent in research and development to formulate the ERP and its compensation packages. That included reviewing the practices in the Kingdom and benchmarks of international standards. The package was designed to award a higher compensation to the lower grade employees and the ones that served the company longer as part of the company's commitment to award its long serving employees. Announcement of plans to all staff was done via Batelco's Internal Communications.
The first message was sent to all staff on 30th July 2007. The message included full details of the programme plus full details of the compensation packages being offered.
The ERP was offered in the first instance as a voluntary programme for one month from 1st August to 30th August 2007.
39 staff applied for the voluntary programme. Of these, 20 were accepted and 19 were rejected, as their roles were considered crucial for the operation of Batelco's business.
The second, non-voluntary phase of the programme ran from 1st September to 31st December 2007. During this phase, roles no longer deemed necessary for the successful operation of business were identified by the General Managers of each division.
Staff occupying the roles identified as being no longer required, were given the option to either enter a three month redeployment programme or immediately accept the offered compensation package.
Staff who opted to enter the three month redeployment programme and who were not successful in acquiring a new position, were then obliged to accept the offered compensation package.
In all cases the compensation packages included one month salary for each year of employment at Batelco, plus in addition, two extra payments - one linked to the employee's grade and another linked to years of service. Each extra payment ranges from BD 1,000 - BD 5,000, whereby staff with longer years of service and lower job grades would have higher benefit.
Batelco adheres to transparency in all its dealings with its staff and public and our doors are always open to receive any questions from concerned parties on this or any other Company matter.
-Ends-
About Batelco
Bahrain Telecommunications Company (Batelco) is the leading integrated communications' provider in the Kingdom of Bahrain and a significant force among the regions key telecommunications players.
Batelco serves both the corporate and consumer markets in the most liberalised and competitive environment in the Middle East, and remains committed to delivering cutting-edge telecommunications to its customers in Bahrain and the MENA region. The Company's management and staff are driven by an enthusiasm for delivering the best customer experience based on innovation, affordability and reliability of products and services.
Batelco offers complete, end-to-end telecommunications solutions for its residential, business and government customers. The comprehensive solutions portfolio covers mobile services, international roaming, Broadband Internet, satellite services, Wi-Fi, and MPLS IP-VPN based network services utilising our Next Generation all IP Network providing Datacoms services over fixed and wireless platforms in addition to managed services including systems integration and management.
Batelco has invested US$1.4 billion in Bahrain's telecom infrastructure since 1981, including significant investment in NGN (Next Generation Networks) infrastructure which has reinforced the Kingdom's position as a leading communications hub. The Company's shares are listed on the Bahrain Stock Exchange with a total capitalisation of approx US$ 3.1 billion as of June 2008.
With an ongoing strategy to grow overseas, the Batelco Group incorporates joint venture operations in Jordan, Kuwait, Yemen, Saudi Arabia and Egypt.
For further information, please contact:
Ahmed Al Janahi
Batelco Group Board Secretary & Company Spokesman
TEL: +973 1788 4411
e-mail: gbs@btc.com.bh
© Press Release 2008
