Industry Committee on Dec. 2nd, 2024

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Savard‑Tremblay.

Mr. Masse, you have the floor.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair.

I don't have the exact number, but I know that Mr. Patzer has identified the number of layoffs that took place.

Mr. Staffieri, can you confirm that you require non-disclosure agreements for people to get severance pay?

[Tony Staffieri]

In terms of any employment separation that we have, we have standard terms around that. As is very typical, the non-disclosure of certain things that are proprietary to Rogers would be part of that as well, if that's what you're referring to.

[Brian Masse, NDP, Windsor West, ON]

What percentage of layoffs require a non-disclosure agreement?

[Tony Staffieri]

That would be very typical in the industry and in the Canadian landscape—

[Brian Masse, NDP, Windsor West, ON]

I'm asking about yours. What percentage do you...?

Have you denied anyone severance pay if they didn't sign the non-disclosure agreement? What happens then?

[Tony Staffieri]

As I said, on any employment separation.... I'm being careful with my words because every situation is different and there are different legislative requirements in different jurisdictions. We vary based on a number of factors in terms of what it would look like in terms of particular terms relating to an employment separation agreement.

[Brian Masse, NDP, Windsor West, ON]

The challenge we have here is that since the Liberals approved the takeover of Shaw, we've seen Rogers employees and Shaw employees fired. I guess the government may have some regrets. Then making those employees sign non-disclosure agreements.... We could have maybe put that in the terms and conditions.

What do you have to say to them? I have a number of former employees here who feel they've been bullied into signing a non-disclosure agreement. Do you have any words for them? Some of them have been loyal Rogers employees for upwards of a decade.

[Tony Staffieri]

As I said, every situation has been different. We've been working with employees to find alternative opportunities for them. In cases where we just don't have that, it's our policy and our intent to make sure we work respectfully with the situation of every individual who leaves this company.

[The Chair, Liberal, Joël Lightbound]

Thank you very much, Mr. Masse.

Mr. Perkins, you have the floor.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Thank you, Chair.

Mr. Staffieri, I'm going to go back to a question you were asked earlier.

How many of your customers were impacted by the $7 surprise increase?

[Tony Staffieri]

We don't disclose the exact number, but I think it's important to highlight, as I did at the outset, that the majority of customers were not impacted. The majority—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I didn't ask you that. I asked for the number.

You know, we have the ability as Parliament to ask for the production of documents. We may do so, since you're trying to hide how many people have been affected.

You were very proud that when somebody's technology gets upgraded.... Do you automatically send out a new updated box to people or do you keep charging them the extra $7 on an old box?

[Tony Staffieri]

One of the upsides of technology today is that we can download software remotely and increase, in a very cost-effective way, the functionality that the box can provide to the customer. While the customer may not see a change in the physical box all the time, there are upgrades and developments—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Actually, you can't upgrade the hard drive. You can't upgrade any of the hardware in it. You're more than willing to let the person still have an old box but charge them higher and higher prices for that box in your small print. You don't proactively go out and ask them to switch.

I'm going to move back to the backhaul. You've sold the fibre optics that connect your towers to the system for all your cellphones for $7 billion to U.S. interests. You said it was equity. Blackstone says it's going to get $400 million a year in revenue.

Can you tell us what pricing guarantees you gave Blackstone, so that it can guarantee its $400 million annual revenue from Canadian customers to that U.S. hedge fund?

[Tony Staffieri]

To date, we disclosed our intent to enter into a transaction that's, very generally, described as a joint venture in the sale of some of our backhaul. We have not concluded on term—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Seven billion dollars' worth—

[Tony Staffieri]

I'm sorry, sir. I'll finish by saying that we have not concluded that—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

—is not just “some”. I'm asking you, what pricing guarantees have you given them? They've come out and said they'll get $400 million a year from you, so you must have given them some minimum pricing guarantees in order to ensure that.

[Tony Staffieri]

We have not concluded a transaction. As I said, we announced our intent—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

You're not going to answer the question.

I would ask for unanimous consent from the committee to ask Rogers to produce the agreement that they have to date with Blackstone, please.

[The Chair, Liberal, Joël Lightbound]

Say that again, Mr. Perkins.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

I would like the committee to ask Rogers to table the document on the details of their agreement with Blackstone to date.

[The Chair, Liberal, Joël Lightbound]

Mr. Perkins, the committee can ask for it.

Is there a need for a motion? I don't think there is a need, but the committee can ask for it.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

We'll expect, then, that we'll get something from Rogers on that.

I'd like to move to the CRTC ruling about a year ago, which said that, in order to foster more competition in Canada, other providers will be allowed on the existing providers' fibre optics to provide better pricing. Since that time, Rogers lobbied the federal government 59 times, and Bell 34 times, to try to change that decision to prevent competition. Lo and behold, they got their wish recently when the Liberal minister said, “Yeah, it's okay. CRTC, we're sending you a request—an order—to reconsider that you not allow any other competitors in Ontario and Quebec on Bell and Rogers' fibre optics.”

Why do you say you prefer and support competition when, actually, you're lobbying against the ruling that would provide more competition, Mr. Staffieri?