Bell Slash and Burn

10,000 jobs lost at Bell Canada. Ten Thousand. Say that slowly.

Can we say that again. 10,000 jobs lost at Bell Canada.

I know the headlines say half that but you have to include the job cuts last year as well.

BCE plans spinoffs, job cuts

Between 3,000 and 4,000 jobs will be cut this year, half through attrition. The reduction amounts to about 9 per cent of Bell’s workforce, which stood at 46,200 at the end of 2005. The cuts are on top of the 5,000 positions that have been eliminated so far as part of the company’s “Galileo” cost-cutting program. BCE said the latest reduction, which the Communications, Energy and Paperworkers union condemned, yesterday, will help lead to additional savings of $700 million to $900 million annually.

Remember that when the neo-cons tell you how only the private sector creates jobs not government. And they destroy jobs and peoples lives too in this era of creative destructive capitalism.

Good old slash and burn capitalism, and of course on Monday their shareprices will rise on this good news. And the reason to cut jobs is to get cash in hand to reinvest. And its not like they suffered this year.

Solid gains were also seen at from Bell Globemedia, which owns The Globe and Mail and CTV, where revenues jumped 10 per cent to $1.6 billion in 2005.

So I guess Mike Duffy and Jane Taber will keep their jobs.

Overall, fourth-quarter revenues jumped 4.6 per cent to $5 billion, and BCE ended the year with $19.1 billion, a 4 per cent increase over 2004. Taking into account a $16 million restructuring charge, profit in the quarter was $413 million, or 44 cents a share, down slightly from $417 million, or 45 cents a share, a year earlier. The results were largely in line with analysts’ expectations.

For the year, profit was $1.89 billion, or $2.04 a share, up 24 per cent over the previous year.

Looking ahead to 2006, the company forecast a profit of $1.80 to $1.90 a share, reflecting a 14-cent cut in earnings resulting from a decrease in discount rates used to calculate long-term pension obligations.

What is the price of greed. The price is increased profits, job loses and increased gouging of consumers.

Oh and by the way for those of you living in Eastern Canada don't expect any cost savings, as consumer your prices are going up too. So much for the B.S. that competition lowers costs. Maybe for business but not for you or I.

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