The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMAS Power and Light (BPL) will save up to $24m annually through a voluntary separation (VSEP) exercise that attracted 319 applicants, the utility's chairman said yesterday.

"We had a total of approximately 300 people who applied to be separated from the company," Darnell Osborne revealed. "On June 22, we will notify those employees who have applied whether the company approves them to be separated or not. June 30 is the anticipated date for separation.

"What has to happen next is the managers of the various areas, technical and administrative, have to meet. They will then determine the critical employees that they need to keep, and a list will be given. At that point the numbers would be determined.

"At this point we do not have an actual number of those that will be approved; not until management has been able to meet and determine the necessary numbers in order to ensure the safety and protection of the business. The management and the Board reserve the right to refuse any critical employees that we feel if we release at this time would affect the operations."

BPL gave employees until 4.30 pm on June 8 to respond to the VSEP package. Mrs Osborne said the staff reduction will save BPL between $1-$2 million per month, or $12-$24 million per year.

The business plan produced by BPL's former manager, PowerSecure, called for 233 persons to be separated in the first phase, and Mrs Osborne said yesterday: "It is something we are still looking at. We are in the process of updating the business plan and we have not finalised that as yet.

'We will look at the various departments and determine which employees are critical to the business at this stage, and who we are not prepared to release in this exercise." She added that BPL has a budgeted figure for the VSEP exercise,, but declined to disclose it.

"We know that we will be saving a few million every month with the reduction in staff numbers, bearing in mind we have 1,100 staff. For each month that we have the reduced number we would save approximately $1-$2 million per month," Mrs Osborne said.

"Bear in mind we have to look at the exact number of persons released, and when we do we realise all of the benefits and pensions. Any employees we retain, we bring them back for a certain number of months so we reduce the cost to the company."

Paul Maynard, the Bahamas Electrical Workers Union's (BEWU) president, told Tribune Business: "The process seems to have went well. People who wanted to go apply, it is what it is. At least you're kind of leaving on your own terms.

"There were 319 people who applied. There are people who have been there 25 years, and the job can put a lot of pressure on you. At some point you have to move on; you have to walk away."