We just went through the worst summer in recent memory in New Providence when it comes to power outages. Many homeowners and businesses lost equipment due to the situation. Many were enraged because family life and commerce were constantly being disrupted. The problem was equipment failure, for various reasons.
This poor service also costs a lot. Customers of the Bahamas Electricity Corporation (BEC) pay for usage and a fuel surcharge. The surcharge is usually three times the usage cost.
Despite the high rates for electricity, BEC is a failed corporation. It has $450 million in legacy debt. The government has to stand behind its loans. BEC's Executive Chairman Leslie Miller has said the corporation stands to lose $30 million this year.
In this context, the Bahamas Electrical Workers Union (BEWU), the representative of BEC's line staff, is in a battle with the corporation and the government over a new contract.
The full scope of the proposed contract is unknown, but Miller recently told The Nassau Guardian that he called a special board meeting to examine it and expressed several concerns. Those concerns included union demands regarding lump-sum payments and rostering, according to Miller.
BEWU President Paul Maynard has said there could be industrial action today over the impasse between the union and BEC. The electricity started going off yesterday.
At times, Miller has been intemperate with his words regarding BEC's workers. He was correct, however, when he said BEC cannot give employees what it does not have when it comes to these negotiations. He has asked the union to be "a little more reasonable, consider the plight of all Bahamians, and stop being so selfish".
The government and BEC should not offer the workers an extravagant deal. In fact, with BEC being a failed state entity that is losing money there is a need for the new deal to cut back on what was given before. No worker should expect more money and benefits when the entity paying the salaries is bankrupt.
The government has pledged to restructure BEC and allow increased private participation in the energy sector. The final decision on sector reform, however, has not been announced. Change is urgently needed, as BEC and its high rates and poor service are inhibiting economic growth.
The union should accept that the corporation is in a poor financial state. It should be reasonable and not seek more than BEC can bear - and it can bear no more when it comes to salaries. The government and BEC should also hold the line and work toward reducing costs at the corporation in order to bring some relief to BEC's financial situation.
Click here to read more at The Nassau Guardian
