Telecoms union wants court to rule on Globalive

Mon Dec 14, 2009 4:44pm EST

* Union looks for legal avenue to overturn gov't decision

* Says decision violates Canadian law

VANCOUVER, British Columbia Dec 14 (Reuters) - Canada's biggest telecommunications union said on Monday it plans to take the federal government to court to force it to reverse its decision to allow foreign-backed cell phone company Globalive to operate a wireless service in this country.

The Communications Energy and Paperworkers Union said the government's action violates Canadian-ownership rules for telecoms companies and threatens jobs. Union president Dave Coles said the union's lawyers are working on finding a legal avenue to get Ottawa's ruling, released last Friday, overturned.

"We are going to take them to court... We have a minority government that changes the very nature of the law that protects Canada from these global monsters because we are a small country," Coles told Reuters.

Under Canadian federal regulations telecom companies must be majority-owned and controlled by Canadians.

In October, the Canadian Radio-television and Telecommunications Commission, the government's regulatory arm, ruled Globalive was effectively controlled by Egyptian-based financial backer Orascom Telecom Holding (ORTE.CA) and therefore ran afoul of foreign ownership rules.

The minority Conservative government overturned that ruling last week saying that Globalive Wireless Management Corp is a Canadian company that meets the country's telecom ownership and control requirements laws.

Globalive said it will proceed with plans to launch a national mobile service in Canada. Service could be launched in Toronto and Calgary as early as this week, it said.

Coles said the government's decision threatens Canadian jobs but also goes against Canadians' desire to have their telecommunications and broadcast industry owned locally.

The union represents more than 30,000 workers in Canada's telecommunication sector, which is dominated by three companies, Rogers Communications Inc (RCIb.TO), BCE Inc (BCE.TO) and Telus Corp (T.TO). (Reporting by Nicole Mordant; editing by Peter Galloway)

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Comments (2)
Freezer1 wrote:
Really?

The union represents 30k members, and Globalive (Wind) has already hired 800, with plans for 200 more shortly.

How is this not giving Canadians extra jobs at a wireless penetration rate of LESS THAN 70%?

The Union itself is simply mad because they won’t be getting money in dues and their own members will be laid off from the original bloated companies.

Perhaps those who side with a union for the sake of it should reconsider where their dues are going. A little extra pension money to a legal battle sounds like a great waste of time.

Dec 15, 2009 1:23am EST  --  Report as abuse
WINDRules wrote:
I was listening to the news on CBC radio while coming back from work and this guy, President of this union was on the radio saying bringing globeliave in to business will hurt canadian culture.

I want to ask him a question: Are you sure bringing almost 80% of american program in Canada on our cable keeps the canadian culture live? Also which country did not progress bringing in foreign investment? If he can show me one example, I will agree with him. Globealive is going to employ about 1500 canadian by next year. Is that hurting canadian culture?

Buddy, please stop taking bribes from those big 3 telecoms and please do think about consumers who pays high fees on mobile services and not even getting close to what they called service. If you really want an open dialoug, please come in to picture and we can talk. Thanks.

Dec 15, 2009 8:48pm EST  --  Report as abuse
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