STATEMENT
BY THE MINISTRY OF SUSTAINABLE DEVELOPMENT, ENERGY, SCIENCE AND TECHNOLOGY ON
INDUSTRIAL ACTION AT WASCO
Fri,
2012-11-16 12:28
Statement
by the Ministry of Sustainable Development, Energy, Science and Technology on
Industrial Action at WASCO
 |
| SENATOR DR JAMES FLETCHER |
November
16, 2012 -- The Ministry of Sustainable Development, Energy, Science and
Technology views with serious concern the ongoing industrial unrest at the
Water and Sewerage Company Inc. (WASCO).
The Ministry has been made to understand that a group of workers has
decided to engage in a work stoppage to demand a date for the payment of
retroactive wages, consequent upon the successful conclusion of negotiations
between WASCO’s management and the Labour Unions representing the workers.
It
is important to note that negotiations between WASCO and the Unions have been
amicably completed, with the Parties agreeing to a 10% increase in wages for
all workers for the negotiated triennium 2010-2012. Given the very precarious
financial state of WASCO and the present economic climate, this was a generous
settlement. The wage increase for the triennium is broken down into a 4%
increase for 2010, 4% increase for 2011, and a 2% increase for 2012. This 4-4-2 Agreement over the negotiated
period is above the increase in the cost of living for the corresponding
period. As a consequence of the wage settlement, there is a retroactive
payment, or backpay, owed to the WASCO workers of approximately $4 million. It
is our understanding that WASCO’s management, by letter dated October 8th, 2012
gave a written commitment to both Trade Unions “to do all within (its) capacity
to complete the retroactive payments as efficiently as possible by year end”.
WASCO
is an insolvent company, whose liabilities far exceed its assets. As a result,
it is virtually impossible for the company to raise any finance for its operations,
expansion or projects to improve the provision of potable water to the people
of Saint Lucia. The Company is unable to
meet its expenses, which include a debt of over $12.8 million to the Saint
Lucia Electricity Services (LUCELEC). Our Government commends LUCELEC on its
exemplary patience and understanding in working with WASCO and Government to
reduce this liability, which grows by approximately $400,000 every month. Currently, WASCO’s total debt stands at over
$100 million and its monthly working capital deficit is approximately $600,000.
On
the strength of a mandate from the Cabinet of Ministers, a special committee
has worked on developing a plan to secure the long-term viability of WASCO.
This involves some immediate measures to improve the Company’s balance sheet
and actions to attract new investments and improve the cash flow. The Cabinet
recently approved a payment of $3.1 million to WASCO to allow for the
commencement of some critical work on the John Compton Dam to address the heavy
siltation at the Dam, which is compromising its ability to ensure a reliable
supply of water during the upcoming 2013 dry season.
Therefore,
in the current circumstances, the company is going above and beyond its means
to address the concerns of the staff with respect to the new Collective
Bargaining Agreement.
It
should also be noted that the current action by this minority group of workers
is illegal based upon the stipulations of the Essential Services provision of
the Labour Act. The timeframe for the
payments of retroactive wages agreed to between WASCO’s management team and the
Trade Unions is not in dispute. We are also aware that no notice has been given
to WASCO, the Labour Department or the Minister with responsibility for Labour
of a grievance over the payment schedule. Therefore, it appears that some of
WASCO’s workers are being led into illegal action under the provisions of the
Labour Act. The Ministry is pleased to note, however, that this action
notwithstanding, the management of WASCO is continuing to work to ensure that
the matter is resolved.
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