Botswana Telecommunications Corporation Limited (BTC)’s 2022 decision to retrench 200 employees as part of a restructuring exercise aimed at adapting its business model for profitability continues to stir up controversy.
The retrenchments have raised questions about the balance between profit-making and social responsibility, particularly given the government’s significant 54% shareholding in the publicly listed company.
BTC’s retrenchments were framed as a business decision necessary to align with its for-profit objectives. While the government retains the largest stake in BTC, over 42,000 Batswana citizens hold shares, positioning the company as a unique blend of public interest and private enterprise.
Tlokweng Member of Parliament Phenyo Segokgo recently sought to know from the Minister of Communications and innovation, David Tshere if government was aware about the retrenchment.
Segokgo further asked if government was aware that some of the employees who had worked for as long as 35 years were only given meager severance packages as low as P40 000. He further indicated that some of the employees were retrenched because of unionizing instead of the said restructuring.
When responding, Tshere who acknowledged the retrenchments cited that he is unable to go further into the matter as it is already before court. “The question of whether it was unfair or fair is a matter that is before the courts. Therefore, I am restricted to comment further as it is subjudice.”
Tshere emphasised that the legal case was initiated by the BTC employee union which disputes the fairness of the retrenchments. Government, while aware of the situation, has so far avoided direct intervention.
When commenting Maun East Member of Parliament, Goretetse Kekgonegile, challenged the government’s handling of the issue, suggesting that, as the major shareholder, it could mediate a resolution outside of court.
“As major shareholders, does the government agree with how things turned out? If not, what prevents the board and management from resolving it amicably to benefit both the company and the retrenched employees?”
In response, Tshere left the door open for potential future action but highlighted the complexity of the situation:
“The case was not brought to court by BTC employee union, so they have the power to withdraw it if they wish. As we move forward, we will aim to avoid such mass retrenchments that contribute to high unemployment rates.”
The Minister emphasised that BTC operates under a profit-driven mandate, noting that shareholders expect returns on their investments rather than charitable outcomes. He defended the company’s restructuring as necessary for competitiveness:
“I am sure the over 42,000 Batswana who have invested in BTC did not do so for charity but for value for their money. This is the business model they chose.”
The Minister denied knowledge of dismissals based on union activity but assured the public that the matter would be investigated.
