Airtel books in the red, says CEO


Airtel’s Chief Executive Officer, Rajan Swaroop, yesterday denied the report that the company has sacked 3, 000 of its Nigerian workers, adding that the company operates in the negative, despite the whopping sum of $1.21bn realised in 2010.

He spoke during an interactive session the House of Representatives Committee on Communication had with the Nigeria Labour Congress (NLC) and management team of Airtel Nigeria over the dismissal of over 3,000 workers from the company. Swaroop argued that Airtel and Spanco had no need of obtaining licences from NCC as they also provide services to other companies.

Chief Executive Officer of Spanco Africa, Mr. K. Sankaraligam, had in a letter dated September 30, explained the decision to suspend Abuja call centre operations following the company’s move to “bring down the cost” as well as operate a new condition of service. The letter read in part: “We are obviously aware of all what is required to be done for running a good business quality, commercially viable operation. No company in Nigeria or outside can continue to incur expenses more than the revenue.

“In the current situation, we are operating at heavy losses and it is not possible for the operations to continue. Certain proposals were made to reduce the losses, but all the options were turned down by your representatives, resulting in failure of mediation talks.” Members of the House Committee led by Hon. Oyetunde Ojo, took on the Federal Ministry of Labour and Productivity and Nigerian Communication Commission (NCC) for failing to implement various labour laws including grant of recruiters’ licences and monitor activities of foreign companies operating in the country.

The lawmakers then directed Airtel and its partners, Spanco and Techmahindra, to provide the operating licences issued by the Federal Ministry of Labour and Productivity and Nigerian Communication Commission (NCC) as well as conditions of service, profit and loss accounts to the committee on Wednesday, October 17, 2011.

The committee members, who expressed displeasure over the crisis, frowned against non-issuance of Identity Cards to the workers, non-payment of bonus and 60 percent pay-cut as well as the disengagement of 15 pregnant women. In his presentation, Chris Uyot, NLC Head of Information and Media faulted the management style of Airtel in relations to workers’ welfare.



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