From:TheBahamasWeekly.com
Hon. Desmond Bannister on BPL voluntary separation exercise
Jul 20, 2018 - 11:00:10 AM
Nassau, Bahamas - Communication by the Hon. Desmond Bannister:
Mr. Speaker:
It has long been recognized that Bahamas Power and Light has been overstaffed by hundreds of employees. The Government took the position that the company had to become leaner and more competitive. A debt ridden utility that relies on government for its continued existence is a drain on the Bahamian taxpayer. Hence, the Board initiated a financially attractive voluntary separation exercise, which had the full support of both of BPL’s unions.
The VSEP exercise opened to all employees of BPL on May 18 and closed on June 8, promptly at 4:30 pm. It must be emphasized that the entire exercise was voluntary. No employee was separated against their will. Of BLP’s 1038 employees, 314 applications were received. All of the applications were approved, but separation dates were staggered to ensure that the company’s efficiency was not negatively impacted:
• 219 applicants were approved for departure on June 30, 2018;
• 8 applicants were approved for departure in July, 2018;
• 4 applicants were approved for departure in August, 2018;
• 9 applicants were approved for departure in September, 2018;
• 4 applicants were approved for departure in October, 2018;
• 7 applicants were approved for departure in November, 2018;
• 39 applicants were approved for departure in December, 2018;
• 1 applicant was approved for departure in March, 2019;
• 12 applicants were approved for departure in June, 2019;
• 4 applicants were approved for departure in December, 2019;
• 7 applicants were approved for departure in June 2020.
It should be noted that 59 of the 95 employees who were retained beyond June 30, will be retained as employees with existing benefits while 36 will be retained on contracts.
BPL made a determination that everyone who wanted to leave should have the opportunity to do so; hence, many senior employees decided to accept the VSEP. It is, therefore, expected that 60 of the positions will need to be replaced as contracted and delayed applicants exit the organization over the next two years.
Among these positions will be posts for senior leadership in many departments. A Bahamian in the person of Patrick Rollins has now been appointed to fill the post of Executive Director, a position that was previously held by Mr. Deepak Bhattnaggar. It is expected that Mr. Rollins will provide valuable support to the C.E.O., Mr. Whitney Heastie, who is tasked with providing leadership in the management of the company.
Mr. Speaker, there is no question that this exercise will improve the financial viability of the Company, making it leaner and more competitive, and permitting it to recruit and hire qualified young people within tightly controlled limits. BPL cannot be permitted to balloon out of control to an unmanageable size ever again.
Mr. Speaker, based on existing head count it is expected that salaries at BPL will be reduced by an average of $13.6M annually over the next 5 years. This total is an estimate and includes new hires to be added to the payroll.
Mr. Speaker, we have provided a table in Annex I to this Communication to illustrate the payouts, and the number of employees who have left each of the various departments at BPL.
This exercise, Sir, was concluded partially with funding from the pension fund Administrator, and partially from funds secured by BPL on 2nd July, 2017 in its recent borrowing exercise which this Honourable House recently passed a Resolution to authorize. A total of $75 M was received in two tranches less bank fees, legal costs and stamp tax. This leaves the current loan balances at $211 M and $35 M respectively. Full details of the sums expended and expected to be expended are also set out in tabular form in Annex II to this Communication.
Mr. Speaker, I take the time to personally thank Mr. Maynard and Mr. Christie for the outstanding leadership and guidance that they have provided to the members of their respective unions during this exercise, and their dignified and professional communication with Management.
I also wish to thank all Board members, particularly Executive Chair Mrs. Darnell Osborne and Chief Executive Officer Whitney Heastie for ensuring that this exercise was completed in the best interest of the company, its employees and the Bahamian people.
Thank you Sir.
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