The Tribune

By NATARIO McKENZIE

Tribune Staff Reporter

nmckenzie@tribunemedia.net

THE Bahamas Electricity Corporation (BEC) and the trade union representing its line staff once again appear on collision course, with the latter saying its members are opposed to contributing to their own pension plans and health insurance scheme.

Stephano Greene, head of the Bahamas Electrical Workers Union (BEWU), told Tribune Business that while existing BEC employees were not prepared to consider making any contributions to their health insurance or pension plans, the union was willing to negotiate such concessions for future hires.

While Leslie Miller, BEC’s executive chairman, announced last week that the Corporation’s employees would be required to contribute 25 per cent of their pension and healthcare insurance costs within months. That is likely to be perceived as a direct strike against BEC’s unions and their long-held generous benefits, which are currently 100 per cent covered/paid for by the Corporation.

Mr Greene said the union had yet to be approached by the Corporation on the issue, and said: “Mr Miller has been saying it in the public before, but the Corporation has not approached us. The union’s official position on that is that as it relates to the insurance part of it, because of the danger of our jobs and because we are not the only Corporation [where employees] do not pay into their insurance, the union isn’t prepared at this time to consider making a contribution to the insurance.

He added: “If the Corporation does approach us we probably will put some proposals for, perhaps, future employees. For current employees, however, the position is that all of us were employed with the understanding that the benefits we receive would be contributed on our behalf, and we are not prepared to change that.

“We have a similar position as it relates to the pension issue. However, the union is not opposed to sitting down with the Corporation and seeing if we can create a contributory pension plan that would be better than what we have now, meaning that whatever the Corporation currently contributes on our behalf, they continue, and if they ask the employees to contribute to the plan, whatever the employee gets at the end of the day will be that and more. That’s the avenue the Corporation should approach the union on.”

Mr Miller recently said BEC employees would be expected to contribute 25 per cent to the overall costs of their pension plan, as well as 25 per cent of their medical insurance, with an increase to 50 per cent in three years.

Mr Miller said the move, which is expected to save BEC $6 million per year, is one of many intended to save the Corporation money that can be transferred into savings for the Bahamian public.

He said BEC continues to experience high costs for the provision of both pension and medical benefits, so employees will now contribute to both plans – something he described as the norm for both private sector and government agencies.