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Manitoba Hydro layoff plan in early stages

Manitoba Hydro says it’s too early to know whether major workforce reductions at the utility will impact Flin Flon.

Manitoba Hydro says it’s too early to know whether major workforce reductions at the utility will impact Flin Flon.

The debt-riddled Crown corporation plans to eliminate 900 positions – 15 per cent of its workforce – across a yet-to-be-announced time frame.

Scott Powell, manager of public affairs for Hydro, said the utility is currently seeking voluntary departures, with about 1,000 employees now eligible to retire.

Until the company knows how many voluntary departures will occur, he said it’s too early to say which specific areas of the province could be impacted.

Powell could not provide a timetable for when the 900 jobs will be eliminated. He said details of the voluntary-departure plan will be announced in the spring, with a more “concrete plan” to be implemented after that.

Another component of the plan will see Hydro seek double-digit rate increases in each of the next five years, at minimum.

Flin Flon MLA Tom Lindsey is railing against the plan on multiple fronts.

“Cutting 900 frontline workers – 15 per cent of Hydro’s workforce – is a terrible blow to these individuals, their families and communities across this province,” he said in a press release.

Lindsey worries the reduced workforce will make it more difficult for Hydro to finish projects on time and meet export contract deadlines.

He said Manitoba has among the lowest electricity rates in Canada, “but this advantage is being undermined” by “the Pallister government’s hand-picked board.”

Lindsey also questions the financial necessity of the moves. He said independent reviews by accounting firm KPMG, bond rating service DBRS and the Public Utilities Board have shown Hydro’s existing long-term financial and construction plans were sustainable.

Hydro’s debt stood at $13 billion as of October 2016, according to CBC.

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