The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas Electricity Corporation (BEC) is looking to slash the more than $12 million it pays annually in employee overtime by implementing a shift system, its executive chairman yesterday telling Tribune Business this currently accounted for almost one-third of payroll costs.

Disclosing that BEC was paying more than $1 million a month in staff overtime costs, Leslie Miller said he was looking to reduce costs in all areas in order to pass savings on to consumers.

“That’s our mandate, to save costs wherever we can to enable us to relieve this onerous burden that is placed on the backs of the Bahamian people. We make no apologies for it,” said Mr Miller.

“BEC finds itself in a very precarious financial situation at this time. The burden of BEC’s financial affairs is placed squarely on the back of the Bahamian people with regards to the high cost of fuel, and the high cost of electricity to be generated.

“Currently, from all indications and the figures that we saw, BEC’s overtime average is in excess of $1 million a month. I think that constitutes almost 30 per cent of the Corporation’s gross pay,” the executive chairman added.

“You have to ask the question: If you have a company that is owned by the people of the Bahamas and we are trying to bring down the cost of electricity, why would we not look at all aspects to save money on behalf of the people who we represent?.

“We have a duty to bring costs down as much as we can in all areas of the Corporation to enable us to pass those cost savings on directly to the people of the Bahamas, who are the customers who rely on BEC for electricity. We will be doing whatever is necessary to alleviate as best we can that excess amount of overtime. It is prudent to do so; it is the right thing to do,”

Such a move, and the implementation of the proposed shift system, while not a final decision is likely to create the grounds for a potential clash with the trade unions representing BEC staff.

But Mr Miller said: “There are two ways to bring down overtime. It’s either by telling the Corporation that there is a need to employ more Bahamians, or these emergency measures that come about and need to be addressed in a tangible and meaningful manner.

“Our view is that you cannot sustain an entity that has trouble paying its fuel bills at this time by allowing the Corporation to, in our opinion, abuse a system to the tune of $1 million a month. That cannot be justified under any circumstance.

“That’s not the only thing we are considering. We are considering every avenue where we can save money on behalf of the people of the Bahamas. We make no apologies for it. Changes have to com. Changes will come whether people like it or not.”

Mr Miller said BEC was averaging over $40 million a month on fuel spend.

“Last year, $362 million was spent on fuel. We have an obligation to try and get the cheapest fuel we can,” said Mr Miller.

He argued that an overtime reduction was not unreasonable, telling Tribune Business: “BEC is the highest-paid corporation in this country.

“The people at BEC make more money than any private entity in this country bar none,” said Mr Miller. “We hope that the people who have the privilege of working for BEC could see the fairness in what we are doing and why it needs to be done because it also helps there families to.”

Stephano Greene, the Bahamas Electrical Workers Union president (BEWU), when contacted by Tribune Business yesterday said the union was not aware of any such proposal by BEC.

“As far as the union is aware, I can confirm that no one has approached the union with any such proposal. If they do approach us, obviously we would have to address that accordingly,” he said.

“From day one the chairman had mentioned the high cost of operations at BEC, fuel costs, salaries, and I think he had mentioned overtime once or twice. They were always concerned from all the Boards that were ever here.

“Overtime is something that can’t be avoided in BEC, it just can’t, and there is nothing anyone can put in place to avoid overtime. Overtime mainly happens when there is an emergency. When something happens you have to call people out to correct the problem. There has always been a fair amount of overtime at BEC. You never know when something is going to break down.”