The coming months may be the last for some employees at the Water and Sewerage Authority (WASA), as Minister of Public Utilities (MPU) Marvin Gonzales says Government expects progress in restructuring the utility company.
During the Standing Finance Committee’s deliberation on the $2.8 billion expenditure for the ministry, Princes Town MP Barry Padarath highlighted Government’s decreased allocation for WASA’s National Insurance Scheme (NIS) contributions by $25,910,000.
Padarath asked if it meant WASA would have a decrease in personnel.
Gonzales said it was not just NIS contributions but a reduction in salaries, Cost of Living Allowances, wages, overtime and all items associated with personnel expenditure.
He said Government expects progress in the restructuring and is awaiting further updates from WASA’s board of commissioners. He said this was a budgeting exercise and believes that is where Government can save costs.
“It is believed that in 2024, a lot of strides and progress will be made in restructuring the Water and Sewerage Authority. It is expected that we can have some cost savings here. We are not sure, but the decrease in the contribution is a result of the savings we expect to have under the line item of salaries and Cost of Living Allowance, wages and personnel expenditure,” Gonzales said.
With Gonzales not saying that WASA would retrench workers soon, Padarath said he was having difficulty with his terminology of progress. Padarath said that a reduction in NIS contributions meant fewer people on WASA’s payroll.
To this, Gonzales replied: “Of course”.
Padarath said the decrease meant Gonzales was sending home WASA employees, but the minister remarked that he could not send home any workers. Gonzales said WASA’s board has the responsibility to implement the restructuring. He added that he could not reveal how many employees the restructuring would impact, saying it would be speculative to do so.
In a media release afterwards, Padarath said the WASA board and Government were the same, since Cabinet selects the members. He accused Gonzales of skirting the issue but said the intention to axe employees was evident. He described it as a cruel, evil and heartless attack on WASA employees when unemployment was already high.
In a further comment to Guardian Media, Padarath said the allocation in the last budget compared to the present shows that half of WASA’s workforce will go home.
WASA: Board to meet
with union month-end
In an immediate response to Guardian Media moments after Gonzales’ statement, WASA chairman Ravindra Nanga said his team was finalising the transformation plan and preparing to meet with the union. Therefore, he said the team will not make any decisions until it completes consultations with the unions and executive management.
The Public Services Association (PSA), National Union for Government & Federated Workers and Estate Police Association represent WASA employees.
Cabinet charged WASA’s board with developing a transformation plan, which it approved a while back. It involved a restructuring of WASA and an upgrade of its plant and equipment, Nanga said. He said the board will update Gonzales on these items at the end of October. Cabinet approved the parameters for consulting with the unions, and Nanga said the proposed plan would also be ready by month’s end.
“As you can imagine, there will be a lot of factors involved in when the restructuring will take place, and of course, a big part of that will depend on how the consultation with the union goes. As you would be aware, we have our vision for the authority, which is within the parameters of what was approved by Cabinet,” Nanga said.
He said the board will consider the union’s views before moving forward and was confident it would agree with the proposals. Nanga said this year’s Budget showed that WASA was a strain on the national treasury and could not continue to operate in its current form. He said while there is criticism of the pace of the restructuring, he was crossing his T’s and dotting his I’s regarding good industrial relations practices.
“We are making sure that we are doing this properly to avoid the union taking injunctive relief on the basis that we are not following proper procedure. There has already been an attempt to do so, to try to stop us from putting forward the transformation plan to Cabinet. Of course, because of the amount of work we did and the careful planning that took place, we were able to successfully defend that position.”
PSA: Anxiety will heighten among workers
PSA president Leroy Baptiste yesterday said the news coming out of Parliament will generate renewed interest and anxiety among WASA employees.
“In this restructuring of WASA exercise, our members are extremely concerned, extremely worried, people’s lives are hanging in the balance. For whatever reason, the employer, WASA’s management and, by extension, the Government, is treating this issue in a gamesmanship manner, where they are not being open and transparent with the process and allowing our meaningful participation in it,” Baptiste said.
He said WASA’s restructuring is a major concern to the executive, recalling that it attempted to get WASA to commit to meeting and dealing with the restructuring before submitting its plan to Cabinet.
However, Baptiste said the court’s position was that WASA was entitled to formulate and finalise a plan before presenting it to the PSA. Since then, the PSA has been waiting to get the plan.
Baptiste said he met WASA’s management on a separate issue last week and told them of his understanding that they had a finalised plan that the PSA was yet to receive. He said WASA claims it will hold back on the restructuring until meeting with the PSA, yet the 2024 Budget already has a reduced allocation. He said it shows WASA already has a concrete plan for its future.