The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Several bidders envisaged slashing the Bahamas Electricity Corporation’s (BEC) workforce by 50 per cent, with its management union yesterday voicing fears that up to seven executives might be axed.

The Bahamas Electrical Managers Union’s president (BEMU), Clinton Minnis, said he and his members were eager to learn more details about the Government’s management agreement with PowerSecure International

Mr Minnis told Tribune Business that while the BEMU welcomed the move to bring in resources and an operating partner to turnaround the troubled monopoly power provider, he had expressed several concerns to Deputy Prime Minister Philip Davis when informed of the Government’s decision last week.

“One of the concerns  that we had was whether the company had  put all of its legal issues behind it,” he said in reference to PowerSecure and the securities fraud allegations facing it. “We know that there was a class action suit against them.

“We also raised questions as to the impact this decision would have on executive management, because we know that the RFP had called for five to seven executives [to be replaced]. Five to seven executive positions could be at risk. Right now we have about 12.

“Of course we would be concerned about our numbers. We also understand that the Board of Directors will be changed and that there will be a new Board,” added Mr Minnis.

“The union now wants to know the strategic plans as to how PowerSecure coming in would make the kind of impact expected, and in what time period would the Bahamian public feel the effects of the change in power supply improvement.

“I just thought that when the  Government came to us with the final announcement that we would have had more details concerning this company’s arrangement with BEC and government. We are stakeholders and we welcome the change to bring in resources, to help all of us in the Corporation  to improve the quality of work that we know that we can do, and to be more efficient in the operation of the Corporation. We welcome any strategic partner who is prepared to help the country and the Corporation do a better job.”

While the broad parameters have been agreed, the Government and PowerSecure still need to finalise key details of the latter’s five-year management contract for BEC.

While this is expected to be concluded without major impediments, this means some vital terms have yet to be decided.

Tribune Business sources close to the process have suggested the transition period before PowerSecure takes full control at BEC will likely take four months, with the Caolinas-based company also needing to update its business plan to account for developments that have occurred since it did its due diligence.

All of which means that some of the answers Mr Minnis and his members, plus the Bahamas Electrical Workers Union (BEWU), are seeking may not be available or decided for some weeks.

BEC has a 1,000-plus workforce spread throughout the Bahamas. Mr Minnis yesterday said the management union understood, and appreciates, that with a new manager for BEC in place, that there will be changes in employee numbers.

Adopting the same pragmatic stance as the BEWU, he added that the unions were prepared to negotiate the best possible compensation for employees who may want to accept separation packages.

Mr Minnis revealed that some bids submitted as a result of the August 2013 Request for Proposal (RFP) had called for as many as 50 per cent of BEC’s staff to be made redundant.

“Some bids had it where you could have had up to 50 per cent of the staff gone,” he told Tribune Business.

“The Government  sought to minimise the impact on job losses, but the Government still won’t reveal to us what that is because the excuse is that they are still working out the details of the business plan. The business plan calls for certain positions to be made redundant, and you have to make room for some people from Power Secure.”

The Government, for both social and political reasons, is likely to block any plans to slash BEC’s workforce by 50 per cent. And it is unclear whether PowerSecure’s business plan is one that calls for cuts so deep.

However, some BEC job cuts appear inevitable if the Corporation is to be rescued. It is likely that a package similar to those offered to the Bahamas Telecommunications Company’s (BTC) staff in the wake of its 2011 privatisation will be made available at its energy counterpart.