With Oi declared bankrupt by the court, Rio Telecom’s employees are left uncertain not only about the future of their jobs, but also about their workers’ compensation payment schedule.
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Workers who receive a minimum wage of up to $150 will be paid upfront. People with credit that exceeds this limit will be included in a bankruptcy estate, but it is impossible to predict when they will be compensated.
In total, the telecommunications company has nearly 13,000 employees, including 10,800 in network maintenance and call center companies. The plan is for these businesses and other assets to be sold as well. This should help with the payments involved in the bankruptcy process.
The company continues to operate in 7,500 locations nationwide, with 4,600 public sector contracts and 10,000 private sector contracts. Keeping these services operational is one of the challenges in this upcoming phase. The transfer of these activities will be coordinated by Oi’s judicial manager.
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What will happen to network maintenance companies and call center companies?
Both Serviços de Rede (Serede) and Brasil Telecom Call Center (Tahto) entered into judicial recovery. Serede has approximately 5,000 employees who are behind on their salaries. Tart has 5,800 employees. Two units will be sold by Oi.
What is the plan for compensation for Oi workers?
The company currently has approximately 2,000 employees. Due to the court’s declaration of Oi’s bankruptcy, employees with unpaid wages exceeding the minimum wage of 150 yen have been placed in a bankruptcy estate, and as a result, there is still no prospect of payment. Those whose minimum wage is worth up to 150 must receive it in advance.
How is the layoff phase planned?
One of the main questions workers have is what the redundancy process will be like: Will everyone be laid off at the same time or in stages?
How long will my health insurance coverage last?
A court ruling recognized health insurance as an essential service. However, employees do not yet know if and for how long this benefit will be maintained. The company currently has agreements with multiple carriers, including SulAmerica.
How does the migration process work for services provided by Oi?
After the court declares Oi bankrupt, the company’s judicial administrator, with judicial supervision, will develop a plan to transfer the services provided by the operating company to another company. The transfer will initially be carried out by Oi Soluções, a division of the company operating in the corporate market. The company’s cash flow, estimated to be approximately 200 million reais per month, will be utilized.
How are Oi Soluções sold?
Oi will continue the process of selling Oi Soluções. Seven companies are interested, according to people close to the ongoing negotiations.
The process will be led by the judicial management team currently in charge of the company, as the board and board of directors have been removed by the court.
What will be the process for selling real estate in Oi?
Oi still owns several properties. The company already has a team dedicated to selling these assets. Many have already been sold, including the Revlon property in Rio de Janeiro, where the company’s headquarters were located. The company owned a total of 7,000 properties, many of which are still involved in legal proceedings.
How will public services be transferred?
The company currently serves 7,500 locations alone. Anatel (National Telecommunications Agency) and the Federal Government will therefore define how this transfer will be carried out, as it is an obligation set out in the agreement concluded between Oi and the regulatory body.
The operator is the sole provider of public telephone and private landline telephone services. Anatel said the idea is that from now on, coverage will be provided by a separate company, whether it’s fixed-line or mobile services.
How will other services provided to public companies be transferred?
The same is true for three-digit telephone services, where operators serve police, fire and civil defense through contracts with these agencies.
Oimachi currently has 4,664 contracts with public authorities in all states and territories (federal, provincial, municipal), including public bodies, ministries, universities and state-owned enterprises.
The company is also responsible for connecting 13,000 Caixa Econômica Federation lottery outlets.
What services does Oi still provide to the public sector?
Services include cybersecurity, cloud computing, artificial intelligence, and the Internet of Things (IoT), as well as communications solutions provided to law enforcement agencies at the state and federal levels.
What will the transfer process look like for Cindacta?
Sources said the court last month transferred the connection from the Integrated Air Defense and Air Traffic Control Center (Sinducta) to Claro (Mexico’s América Mobil), but the process is expected to take several more months.
In illustrating the complexity of the operation, the court recalled that authorizing the military transition required “coordination with more than 100 civilian and military authorities.”
Does Oi serve private companies?
yes. Oi maintains around 10,000 active contracts and provides data and voice to some of the largest enterprises including retailers, airlines, multi-capital companies and financial institutions.
Does Oi still offer landline telephone service for individuals?
yes. This service is provided by Oi Soluções. This is telephony via UC4X, a 100% cloud-based IP telephony platform that turns traditional landline lines into virtual lines.
Currently, there are few customers, mainly small-scale entrepreneurs, farmers, shopkeepers, and merchants. Oi has sold its mobile phone business (Oi Móvel), landline phone business (Oi Fixo) and broadband business (Oi Fibra, now Nio), so it no longer has a retail business.
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