Hydro will reveal cost-cutting measures, layoffs next week, employees told

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This article was published 25/05/2020 (2344 days ago), so information in it may no longer be current.

Manitoba Hydro will let workers know next week about how it plans to meet its workforce cost reductions with the fewest possible layoffs.

A message to employees of the Crown utility today from vice-president Sharon Harrald said Hydro’s executive leadership has been looking at all options for meeting the wage cost reduction targets set by the province.

“This work takes time, requires consideration, with many decisions to be made,” Harrald’s message said.

“Our goal is to share with you the outcome of the review of these alternatives and any layoffs the week of June 2.”

Her message is far less dire than one two weeks ago, when employees were told to brace for up to 700 temporary layoffs. President and CEO Jay Grewal warned employees on May 11 that the layoffs could start happening as soon as the end of that week, and that the Crown corporation “had no other choice.”

The outcry that followed from unions representing the workers warned that job cuts could affect service to Hydro customers. Premier Brian Pallister insisted that the publicly owned power company could arrange to have a federal Employment Insurance work-share agreement to minimize the number of layoffs. He said the workforce cost cuts were needed as part of the province’s economic response to the COVID-19 pandemic.

An internal Hydro memo, however, said that an EI arrangement wasn’t feasible because of all the criteria required to apply for the program.

Workers and their unions have submitted ideas for the company to cut costs and avoid layoffs at the same time, Harrald wrote.

Hydro is reviewing the proposals and continuing discussions with the bargaining units and associations representing its workers.

“I would like to thank everyone for their patience and continued focus to work safely throughout this pandemic, and through the added uncertainty and strain the potential workforce reductions have caused,” her message said.

The Canadian Union of Public Employees and Hydro met Friday to discuss options but no final decisions have been made, said David Jacks, Manitoba spokesman for the union that represents 900 Hydro workers. He said the organization has very few details about what Hydro or the government are considering.

“Hydro workers continue to work at full capacity, including responding to storms,” Jacks said Monday. “CUPE is concerned that any efforts to reduce the workforce further will result in lower service and compromise the safety and reliability of Hydro.”

Austerity measures make no sense and will ultimately result in more costs for both the utility and the province, Jacks said.

“After years of forced cuts at Hydro, Pallister wants Hydro’s front-line workers to do the same job for even less during this crisis, but the work doesn’t go away and front-line workers are already stretched,” he said. “Overtime, call-ins, catch-up costs, not to mention reduced spending in the economy, will be the result.”

carol.sanders@freepress.mb.ca