Jobs for Newfoundland and Labrador - Minister discusses TeleTech Holdings Inc. investment

The Government of Newfoundland and Labrador is committed to attracting new business to the province and to creating meaningful, well-paid employment. Kathy Dunderdale, Minister of Innovation, Trade and Rural Development, today released information pertaining to the incentives offered to TeleTech Holdings to create a business process outsourcing centre, and 600 jobs, in Mount Pearl.

"The Government of Newfoundland and Labrador is pleased to welcome TeleTech Holdings to our province," said Minster Dunderdale. "Competition from other jurisdictions is quite stiff for such beneficial contracts and our goal was to attract this financially-sound company to our province."

To remain competitive with other provinces, government did not initially release the amount of wage subsidy it will provide to TeleTech Holdings. In the interest of openness and accountability, Minister Dunderdale released this information today.

Based on estimated employment levels, it is expected that due to this contract Newfoundland and Labrador will have a net gain to the provincial economy over a five-year period of $57 million. To achieve this goal, the province will provide incentives of approximately $1.1 million annually, over the life of the five-year agreement, based on the company's gross payroll. That number may vary from year to year and is dependent on the total number of employees at the Mount Pearl Centre. The incentives will be provided only after the company has created the jobs and they have been verified by payroll audits. Minister Dunderdale said financial due diligence was carried out on TeleTech before government entered into an agreement. "We reviewed the company's business plan and audited financial statements, and carried out a financial and credit review of the company," said Minister Dunderdale. "TeleTech is a publicly traded company, conducting a billion dollars in sales annually. We know that TeleTech is excited to be part of the Mount Pearl community as well as a vital corporate source of new employment for our citizens."

The 600 jobs this contract will bring to the province is in addition to the 4,000 people currently working in the customer contact industry throughout the province.

Media contact: Lynn Evans, Communications, (709) 729-4570, 690-6290

2005 06 21                                   3:20 p.m.