It was announced earlier today that the agreement between Jamaica-based telecom LIME and Ericsson Cayman Ltd. means that 39 people will lose their jobs in Cayman.

In a Press release LIME sent to the media they announced they (LIME) had entered into a “managed services agreement” with Ericsson, effective March 8, in an effort to restructure operations and improve efficiency and service levels.

“This agreement will see 39 members of LIME’s service support and delivery team separating from the company. As part of the agreement and to maintain employment levels, all of the impacted LIME employees will have the opportunity to reapply for roles with Ericsson which is building a new team here in Cayman to deliver services to LIME.

“This commercial decision is in an effort to improve both the service levels we provide to customers and the efficiency with which we do so. LIME remains committed to enhancing customer experience across our range of services and this partnership best fits that goal. We felt it was strategically important to team up with a global leader in the industry and it is from this perspective that we agreed to go with Ericsson as a partner.

“When we consider Ericsson’s domain knowledge, economies of scale, network design, optimization and field maintenance we are confident that we will be well positioned to provide service that is on par with best-in-class operators across the globe.”

The release was signed by LIME’s CEO Bill McCabe.

The Cayman Islands Government was very quick to reply.

Release from the Office of the Premier of the Cayman Islands

Ericsson LLC ensures Caymanian jobs

GRAND CAYMAN, Cayman Islands – Ericsson Cayman must hire Caymanians or it could lose its Local Companies (Control) Licence Grant and ability to operate in the Cayman Islands.

It was announced earlier today that the agreement between Jamaica-based telecom LIME and Ericsson Cayman Ltd. means that 39 people will lose their jobs in Cayman.

The approval of the LLC to allow Ericsson to engage in telecommunication repair, maintenance and installation was based on six conditions, including that Ericsson hire Caymanians. The LLC is in effect from 4 February, 2013, to 4 February, 2019.

“When we found out about this agreement we immediately thought of Caymanian workers and insisted on the language in the LLC to ensure our people are hired,” said Minister of Planning, Agriculture, Housing and Infrastructure Hon. Kurt Tibbetts.

The Minister of Employment, Hon. Tara Rivers, also met with representatives from Ericsson to ensure the protection of Caymanian workers was factored into the intended workforce arrangement.

Through the agreement, LIME has outsourced the maintenance, installation and repair work on the external components of its fixed, mobile, Internet and data networks. The engagement comes into effect on 8 March, 2014.

“Finding jobs for Caymanians who are willing and able to work remains a top priority for the Progressives Government,” said Premier Hon. Alden McLaughlin.

FOOTNOTE: LIME is a UK company that is traded on the stock exchange.