Bell Canada offering severance packages to 1,200 unionized employees

Bell Canada has offered severance packages to 1,200 unionized employees in the wake of unprecedented challenges in the telecommunications industry. A company spokesperson confirmed the news, saying the “newer” program would allow eligible employees to retire or seek other employment. The Bell Media division is not included in the voluntary buyout.

The spokesperson added that the company is in transition and that a number of organizational changes, including moving customers to newer fiber-optic networks, have resulted in a reduced workload and the need for fewer jobs.

The union representing Bell employees has condemned the program as a “harmful show” designed only to temporarily cut costs and boost profits at the expense of employees. Unifor president Lana Payne said that “Bell can’t cut jobs every year and expect things to improve on their own.”

Canada’s communications industry has been sluggish in the past year, with major players such as BCE and Rogers selling assets to cut costs. Bell sold its 37.5% stake in sports company Maple Leaf Sports and Entertainment (MLSE) to Rogers last September for $4.7 billion and announced plans to acquire U.S. communications company Ziply for $5 billion.

However, the company has made several rounds of job cuts in the past year and a half, including 1,300 jobs in June 2023, announcing 4,800 job cuts in February 2024 and closing several radio stations, as well as further cuts to its technical staff later that year.

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