The union representing Sasktel workers is accusing the provincial government of “privatization by stealth.”

Over the past few months, Unifor has been running a campaign to “Stop SaskTel Privatization.”

“I call it privatization by stealth and death by 1,000 cuts,” said Unifor Local 1-S president Dave Kuntz.

“They’re slowly using contractors. It’s not wholesale, 500 jobs at a time. It’s five jobs here, 10 jobs here, 40 jobs here.”

He said the company is not laying off workers, but also not filling jobs when people retire or leave. He said those jobs are being combined, changed into part-time positions or contracted to workers outside of Saskatchewan.

Unifor represents 2,700 SaskTel employees across the Province.

Kuntz said in recent months companies in Alberta, Manitoba and the Maritimes are doing work in areas like sales, IT and installation that could have gone to SaskTel workers.

He said seeing Alberta licence plates on vehicles installing SaskTel services is “frustrating.”

“I mean those jobs could be done in-house. I don’t see any reason why we’re not having full-time jobs here at SaskTel.”

Kuntz said customer service will eventually suffer and “that will make it become ripe for privatization.”

Unifor and SaskTel have a five-year contract agreement that expires in 2024. Kuntz said the union will be proposing strong anti-contracting-out language in the next collective agreement.

Kuntz said hiring out-of-province contractors or companies flies in the face of the messaging from the provincial government, which says a major goal is to create jobs and grow the economy.

“We want good-paying, full-time jobs, good benefits in this province. We don’t want to see them going to contractors out of province. That money that leaves the province is gone forever.”

SaskTel response

CBC requested an interview with SaskTel to respond to Unifor’s criticism, but a media spokesperson for the Crown said no one was available. Instead, it provided a statement.

“SaskTel utilizes a variety of consultants, contractors, vendors and suppliers, in addition to our employees, in order to meet the ever-evolving demands of our industry and to ensure we are delivering the best products and services to our customers across the province.”

Last week, Unifor said the Crown had contracted out its “small business media advisors department of SaskTel (formerly Crown corporation DirectWest) to a firm in Manitoba called MidWest Teleservices (MTI).”

SaskTel said in its statement it has had a relationship with MTI for years.

“In that time, we have utilized this service provider to generate sales leads that employees then follow-up on to close the sale. This type of relationship is advantageous for employees as it allows us to action new revenue opportunities while also sending additional work to our in-scope staff. This has not taken work away from in-scope employees.”

SaskTel said it has been recognized as a top employer in the province.

“We are proud to continue to both serve the people of Saskatchewan while also offering attractive employment opportunities.”

Province has walked-backed selling parts of Crowns in past

In April 2017, the provincial government’s Bill 40 became law, allowing 49 per cent of a Crown corporation to be sold without public consultation. After backlash, Premier Brad Wall announced in October 2017 that the law would be scrapped. It was repealed in 2018. 

“You believe the sale of any stake, any part of a Crown corporation, is privatization and that would be counter to an important promise we’ve made in three different election campaigns. And I just want you to know that we have heard you,” Wall said after announcing the walk-back.

Kuntz said the union believes the government is breaking the Crown apart slowly.

“I think they know going through the front door, this province will push back. They love their Crowns. But if you start getting to a point where service levels degrade, then the customers will start changing their perception and that’s what they’re doing. So it’s called privatization by stealth.”

Policy alternatives paper applauds SaskTel model 

A report published Tuesday by the Canadian Centre for Policy Alternatives examined the impact of Manitoba’s privatization of its telecommunications Crown, Manitoba Telecom Services (MTS). In 1996, MTS was privatized and in 2016 it was purchased by Bell.

The report’s author Doug Smith argues that the privatization and eventual purchase by Bell have led to job losses and higher rates for customers. 

“SaskTel, the last remaining provincially owned telecommunications company, is a standing rebuke to those who argue that we must bow down to the private sector.”

Dave Eyjolfson, president of TEAM Local 161, which represents more than 500 Bell MTS workers, said the union is “worried about the lack of opportunities and prospects for the next generation of workers. Bell needs to revisit their promise to make Winnipeg the western headquarters.”