Staff staying put
NorthwesTel wants to hear from CRTC first

Doug Ashbury
Northern News Services

Yellowknife (Mar 29/00) - Before NorthwesTel even considers moving jobs from Whitehorse to Yellowknife, the company will wait for resolution of its CRTC high-cost service area submission, a spokesperson for the telecommunications company said.

NorthwesTel made its submission to the Canadian Radio-television Telecommunications Commission on Jan. 17.

"We're not in a position to respond to a request to move positions," said Anne Grainger, NorthwesTel's public affairs director.

Grainger's comments are in response to a members' statement made by Frame Lake MLA Charles Feb. 22 in the NWT legislature.

Dent suggested the GNWT meet with NorthwesTel to discuss the company's employee distribution. He added that given the NWT's debt situation, government should press for equitable distribution of positions in the NWT. Dent also wanted some of the CRTC hearings to be held in Yellowknife.

Hearings on the submission are scheduled for June 12 in Whitehorse.

As for where NorthwesTel's staff are based, Grainger said about 290 employees live in the Yukon compared to about 170 in the NWT. About 45 staff are in Nunavut while 17 are in British Columbia.

The company's corporate offices, which includes marketing, financial, legal, accounting and human resources arms, are in Whitehorse. Operations are based in Yk.

"We had marketing split between Whitehorse and Yk but it just didn't work because they need to work closely together," Grainger said.

The company has four vice-presidents (two in Whitehorse and two in Yk). The president is based in Whitehorse and maintains an office in Yk.

Last fall, the CRTC recognized Northern Canada as a high-cost service area and required NorthwesTel to submit a service improvement plan for extending basic service and upgrading the quality of long distance. The CRTC called for the submission because there were concerns over how the planned introduction of competition will effect service in the North.

Earlier this year, NorthwesTel president Peter Boorman -- Paul Flaherty has since been appointed temporary president -- said it will need $35 million in annual subsidies if services are to be expanded and costs lowered across the company's Northern operating area.

On top of the $35 million, the company also wants a one-time $68-million subsidy to upgrade its existing telecommunications network.

NorthwesTel suggests southern telecommunications companies should provide the subsidy. The company also wants to be able to achieve a 12 per cent return on equity.