The striking movement against the sale of the Puerto Rico Telephone Company, and against government's privatization policy, in general, is in a crossroads, after the victorious development of the General Strike early this week. In front of the possibility that the sale process stalls with the appearance and consideration of other offers, the union leadership has made public the position of returning to work.
It was reported by a business weekly, although denied by government spokesmen, that Gov. Pedro Rosselló had accepted the new offer, by Spanish origin TISA. In any case, the offer is being considered by the government's privatization committee, and GTE, the company that had previously contracted with the government (with the enacting law already signed), has the right to review and change their offer.
In accordance with GTE contract, the government can review new offers, but it has to send them to the company so they can review. If the government chooses another offer, the it has to pay a $25 million fine to GTE. TISA offer, for a lot more money, includes those $25 million.
In the GTE offer, it would buy the Telephone Company for $1,875 million, paying $375 million cash and $1,500 million with a Citibank loan that will be assumed by the privatized Telephone Company. At the same time, GTE will sell 5% of its share to Popular, Inc., for $37.5 million, and the same amount to a local investor group whose names have not been disclosed.
TISA offered $2,025 for 50% and $2,125 for 60%. It obtained the financing from Bilbao Vizcaya Bank.
Along with the price, there are other fundamental differences among the offers, concerning job guarantees, rate changes, market exclusivity and infrastructure investment.
As for the employees, both promise to respect the standing collective contracts and to offer early retirement or early separation from the job. But TISA offered to guarantee the jobs for 4 years, and GTE only for one year.
GTE did not signed on not raising the rates, and conditioned the changes to the market conditions. TISA said they will not raise the rates.
As those negotiations go along within the Government and the corporations, the leaders of both unions in the telephone company made public statements in the direction of being considering a return to work, as the process will take more time. The statements, however, were like a cold shower to the workers in the picket lines. A lot of them have said are nor willing to return to work until the cancellation of the sale, and claim, at the least, that the issue be discussed among the base of the unions, as was when deciding to go to strike.
This situation should define during the weekend.
LUCHA SI ENTREGA NO