Menu
23/10/2001
Unions brand BT demerger as “insane”
The Communication Workers Union (CWU) has mounted an eleventh hour bid to save BT from inflicting “insane” damage on the company by a demerger.
The union lobbied Tuesday’s extraordinary meeting of BT shareholders at the NEC in Birmingham in a determined bid to highlight the dangers of a demerger scheme that would spell the end of BT as an integrated telecoms provider.
The CWU has been calling on top managers and administrators to reconsider the split up of the British telecommunications giant into two separate companies, a move that will separate the fixed line business from the high-growth potential mobile division.
CWU deputy general secretary Jeannie Drake said: "This is like no other dispute in the history of the trade union movement. It has nothing to do with pay or conditions - simply a genuine desire to stop the company inflicting terrible long-term harm on itself where there is no commercial justification.
Although the opposition to the demerger is unlikely to succeed, the unions are not isolated in their prediction of danger ahead for BT; some analysts are concerned that divestment may reduce shareholder value. The unions are worried that mmO2 will be vulnerable to takeover in a mobile market sector that is likely to see further consolidation and that BT, bereft of the growth potential from a mobile wing, will no longer be able to exploit opportunities that integrated telecom companies will be able to enjoy.
Under the demerger, two holding companies, BT Group and mmO2, will be created. The BT Group will be comprised of BT Retail, BT Wholesale, BTopenworld, and BT Ignite. The second holding company, mmO2, will be made up of BT Cellnet, Digifone (formerly Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie (SP)
The union lobbied Tuesday’s extraordinary meeting of BT shareholders at the NEC in Birmingham in a determined bid to highlight the dangers of a demerger scheme that would spell the end of BT as an integrated telecoms provider.
The CWU has been calling on top managers and administrators to reconsider the split up of the British telecommunications giant into two separate companies, a move that will separate the fixed line business from the high-growth potential mobile division.
CWU deputy general secretary Jeannie Drake said: "This is like no other dispute in the history of the trade union movement. It has nothing to do with pay or conditions - simply a genuine desire to stop the company inflicting terrible long-term harm on itself where there is no commercial justification.
Although the opposition to the demerger is unlikely to succeed, the unions are not isolated in their prediction of danger ahead for BT; some analysts are concerned that divestment may reduce shareholder value. The unions are worried that mmO2 will be vulnerable to takeover in a mobile market sector that is likely to see further consolidation and that BT, bereft of the growth potential from a mobile wing, will no longer be able to exploit opportunities that integrated telecom companies will be able to enjoy.
Under the demerger, two holding companies, BT Group and mmO2, will be created. The BT Group will be comprised of BT Retail, BT Wholesale, BTopenworld, and BT Ignite. The second holding company, mmO2, will be made up of BT Cellnet, Digifone (formerly Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie (SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
17 December 2018
InterTradeIreland Announce Funding Advisory Workshops
InterTradeIreland have announced a series of free funding advisory workshops for small and medium-sized enterprises.
InterTradeIreland Announce Funding Advisory Workshops
InterTradeIreland have announced a series of free funding advisory workshops for small and medium-sized enterprises.
25 October 2018
Techstart Academy Announce Product Management Workshop
The Techstart Academy has announced an event in Belfast on 22 November, which aims to "bring to life" the fundamentals of product management and best practices to drive product success.
Techstart Academy Announce Product Management Workshop
The Techstart Academy has announced an event in Belfast on 22 November, which aims to "bring to life" the fundamentals of product management and best practices to drive product success.
11 November 2010
Firms Win InterTradeIreland Competition
Two NI firms have excelled in what is the largest business competition on the island of Ireland - Seedcorn 2010. Run by InterTradeIreland, the organisation that supports small and medium-sized businesses across Ireland for better North/South trade and business development, it offers a total prize fund of €280,000.
Firms Win InterTradeIreland Competition
Two NI firms have excelled in what is the largest business competition on the island of Ireland - Seedcorn 2010. Run by InterTradeIreland, the organisation that supports small and medium-sized businesses across Ireland for better North/South trade and business development, it offers a total prize fund of €280,000.
09 July 2009
Arntz Belting Heads For Trouble
The future for a struggling Pennyburn fan belt factory, which currently employs around 110 people, is looking bleak. The manufacturing plant, Arntz Belting Company, went to a three-day week in December and also sought 28 redundancies in March. However, the global recession has led to the firm's parent company looking at further cuts.
Arntz Belting Heads For Trouble
The future for a struggling Pennyburn fan belt factory, which currently employs around 110 people, is looking bleak. The manufacturing plant, Arntz Belting Company, went to a three-day week in December and also sought 28 redundancies in March. However, the global recession has led to the firm's parent company looking at further cuts.
14 November 2007
NI Enterprise Celebrated
As part of National Enterprise Week, Invest Northern Ireland - in association with Ulster Bank - has hosted a Celebration of Enterprise gala dinner at which several local entrepreneurs were honoured for their contribution to business.
NI Enterprise Celebrated
As part of National Enterprise Week, Invest Northern Ireland - in association with Ulster Bank - has hosted a Celebration of Enterprise gala dinner at which several local entrepreneurs were honoured for their contribution to business.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
