Expertech Network Installation Inc. will begin winding down its operations following the rejection of its final off...
February 27, 2007
Expertech Network Installation Inc. will begin winding down its operations following the rejection of its final offer by a majority of its technicians represented by the Communications, Energy & Paperworkers Union of Canada (CEP).
The company says its prices, which are currently about 25% above market rates, urgently needed to put in place a competitive cost structure in order to retain its customers and remain viable.
“We are deeply disappointed by the results of the vote,” said Jacques Robichon, president and CEO of the company.
“We needed this agreement to ensure the survival of the company. We have clearly stated all along that rejection of this offer would lead to closure. Employees were well aware of the stakes and the consequences. With the rejection of the offer, we have lost our major customer and we are no longer viable.”
Expertech, owned by Bell Canada and SNC Lavalin, provides network infrastructures in Canada and the U.S., with the bulk of its operations in Ontario and Quebec. Expertech’s primary customer is Bell Canada.
Currently, Expertech rates are substantially non-competitive compared to market. With the expiry of its service agreement with Bell in 2007, Expertech needed to put in place a cost competitive structure to maintain its preferred supplier status with Bell.
With Expertech’s failure to restructure, Bell has announced that it will transfer its work to other suppliers in Ontario and Quebec.
The company said it will assist all of its 1,700 employees through this “difficult transition and treat everyone fairly in the process.”