Union conflict threatens expansion

24 Oct 2006

The ARS1.3 billion (USD421 million) investment plan announced for 2007 by Telefónica de Argentina could hit problems due to a conflict with Buenos Aires based telecom workers union Foetra, according to BNamericas, quoting local newspaper Infobae. The union wants 2,000 outsourced Telefónica workers, employed mainly in the expansion of its infrastructure, to be afforded status as members of Foetra, rather than the construction union Uocra. Telefónica, the country’s first-placed wireline and broadband provider, has said that the conflict could paralyse 60% of the company’s expansion plans. Meanwhile Amadeo Vásquez, the chairman of Telecom Argentina, Telefónica’s main fixed line competitor, has been quoted as saying that demand in the telecoms sector will remain constant during 2007. This sustained demand is the basis of the operator’s billion peso broadband investment plans, reported by CommsUpdate earlier this month.