Thursday, November 05, 2015

Baird's $20 billion Privatisation of Electricity faces Setback

The NSW government's $20 billion privatisation of its electricity networks had a setback when the Fair Work Commission ruled it could not use compulsory redundancies to abolish the 2500 job needed to return to profitability.

The decision concerns Essential Energy, a country network which will not be sold, and Ausgrid, in which NSW wants to sell a 51-per cent, long-term lease. The company said in April it would need to cut at least 2500 jobs because of a decision by the Australian Energy Regulator that cut revenues by 30 per cent.

Unions challenged the redundancies which they said contradicted workplace agreements. The companies said the agreements had expired in the past six months at the end of their  agreed minimum term. Fair Work Commissioner Adam Hatcher said the agreements remained in force until they were re-negotiated or terminated by the commission.

The companies will now have to negotiate new deals with workers before they can restart compulsory redundancies or else apply to have the agreements terminated. That will at the least delay job cuts and in the case of Ausgrid, could add to the uncertainty facing potential investors who were supposed to be invited to bid from early next year.

"It is time for management – along with the NSW Government – to return to the negotiating table and have a serious look at the many alternatives to job cuts that are available," said United Services Union energy manager Scott  McNamara

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