Employees of Suntel Ltd., whose future with the Company is under the axe with the impending sale of ownership, are getting restless.
They alleged that at least 250 of the permanent cadre out of 440 and half of the contract base would lose jobs via the VRS and re-sizing initiative suggested by the prospective new owner Dialog Axiata.
The deal between Dialog and Suntel is still pending as it is subject to the approval of industry regulator Telecommunications Regulatory Commission (TRC) which comes under President’s office.
The employees have made representations to the TRC against the impending deal whilst in a recent meeting with the Board/shareholders; the Executive Directors of Suntel had urged them not to sell the company to Dialog.
Suntel employees who are likely to be sent home via the VRS told the Daily FT that the Board of Directors were favouring Dialog despite Vallibel One Ltd., making a clean offer of $ 28 million sans any retrenchment.
Dialog had given a conditional offer of $ 26.5 million and $ 31 million with the latter involving the VRS as well as provision for on-going litigation.
Despite employee allegations as well as reports of impending deal, Dialog Axiata hasn’t made any disclosures yet with regard to Suntel.
Employees also faulted the current Board and management for what they alleged as running down Suntel, which six years ago was in the market for sale with a price range of $ 180 to 200 million. However industry’s landscape and dynamics have changed vastly since then whilst Suntel’s customer base too has eroded and bleeding with losses. The current accumulated loss in the company for this year is Rs. 300 million as against the budget as opposed to near Rs. 1 billion profit a few years ago.