Bell Aliant to cut some Atlantic operations

Telecommunications provider Bell Aliant is cutting some of its operations in Atlantic Canada in a bid to reduce costs, CBC News has learned.

An internal memo sent to staff and obtained by CBC highlighted the company's plans to cut costs, which include tripling the number of contractors, closing three of its five customer contact centres, consolidating some services and eliminating retirement benefits.

One representative of the union that represents Bell Aliant's Atlantic workers, the Communications, Energy and Paperworkers (CEP) Atlantic Communications Council, said one of the three centres closing is in New Brunswick and that 250 workers would be laid off there.

Phil Briffett, the union's vice-chair for Atlantic Canada, said Bell-Aliant's announcement could mean hundreds of job losses.

"If you're going to close down three contact centres you're talking hundreds of people," Briffett said.

"I suspect there will be job losses in all four provinces."

Briffett said many workers in the company will likely be forced to choose between losing their job or moving to another province for work. And, as Bell-Aliant employs more contractors, Briffett said, jobs opening up due to retirements will no longer go to full-time workers.

Alyson Queen, the Bell Aliant public affairs manager, would not confirm that the changes announced in the memo would involve layoffs.

Chuck Shewfelt, a national representative of the CEP in Newfoundland and Labrador, said the union was "not surprised" by Bell Aliant's moves. He said "high-level discussions" have been scheduled between the union and Bell Aliant for July 26 and 27.

He said the union is not in a position to take job action, as the current collective agreement expires in 2011.

Recent renegotiations stalled after the union declined a ratification vote just over one month ago.

Shewfelt said Bell Aliant told the union these cuts would be coming if the ratification vote didn't pass.

Employees were told they will continue to have access to a program that will allow them to purchase retirement benefits at a reasonable cost.

"I know these are not popular or easy decisions, but I remain committed to being as upfront with you about our business realities as I possibly can," Karen Sheriff, the Bell Aliant president and CEO, wrote in the memo.

"Unfortunately, the status quo is not an option, and now, we need to keep finding ways, big and small, to reduce costs over the next 12-18 months and beyond."

The changes announced today are expected to start being implemented in the fall.

The cuts could potentially affect P.E.I. because there is a contact centre in Charlottetown. Nova Scotia and Newfoundland and Labrador also have major Bell Aliant operations.

It's not known if the Charlottetown centre, which employs 100 people, will be one of the ones to close.

Bell Aliant also operates in Ontario and Quebec.