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Submitted by Anthony Davis

The Barbados Light & Power Company Limited (BL&P) has been warned that it will not be allowed to send home workers before discussing the matter with the Social Partnership. Any attempt to do so will be met with strong resistance from the combined forces of the Barbados Workers’ Union (BWU) and Ministry of Labour, the union’s General Secretary Toni Moore cautioned today โ€“ Barbados Today

tonimooreI sincerely hope that this is not another empty threat by one of the trade unions in this country. Recently they are better known for their bark rather than their bite, as they have not represented their constituents to the best of their abilities because they were sleeping too soundly in their beds with this Government.

I take umbrage at the behaviour of the head of the BL&P when she states that it is either layoffs or a rate hike. Is she a member of the Fair Trading Commission (FTC) that she can make such an audacious statement?

In other words, does she have any say whatsoever in whether that company would be granted a rate hike?

What is the FTC’s take on that statement?

Why is the FTC’s silence so deafening on this matter?

I do not like the condescending tone of the head of Emera, because it seems to me that she thinks that Barbados is some banana republic! It is not even a republic yet – far less a banana one. Barbados is a sovereign and independent state, and if she does not like the laws of this country then she knows what she can do!

There are enough flights out of Barbados – she can even take a cruise to her destination – but we should not tolerate such an aloof stance from the powers that be at the BL&P.

It must be made abundantly clear to Emera that there is no getting around involving the unions and the Ministry of Labour.

We must remember that a right lost to one is lost to all.” – William Reece Smith, Jr.


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106 responses to “Barbados Workers Union FACE OFF With Barbados Light & Power Company”


  1. Is Toni Moore’s public position against EMERA and BL&P be like Geronimo’s last stand?


  2. Real Issue is that BARBADOS UNIONS are totally OUT OF CONTROL and have been for a number of years. Black union leaders and politicians have to realize that the slave days are over and individusl (plantation owners) are no longer in control but large corporations reporting to a group of shareholders who want profits. Efficiency, profitability come FIRST. Barbados’s inability to move from the 100’s to the 21st century in the it thinking is what is bringing the country closer to FAILURE each day. If Barbados does not wake up and smell the roses shortly they’ll be the new Haiti of the caribbean.


  3. Barbados and Bajans should buy back BL&P.

    it is an ESSENTIAL SERVICE.

    Barbados is a de facto first world Republic. Act like one.

  4. John Hanson 1781-1782, I SERVE 1788-1792 BARBADOES, Avatar
    John Hanson 1781-1782, I SERVE 1788-1792 BARBADOES,

    Hants April 18, 2015 at 9:03 AM #

    Barbados and Bajans should buy back BL&P.

    it is an ESSENTIAL SERVICE.

    Barbados is a de facto first world Republic. Act like one.@

    WHIT WHAT MONEY? MORE TAXES?BUY WHAT THEY CANT OR REFUSE TO PAY THEIR BILLS


  5. @ Wily Coyote
    “……..but large corporations reporting to a group of shareholders who want profits. Efficiency, profitability come FIRST.”
    +++++++++++++++++++++++++++++++++++++++
    Have you looked at Light and Power financials for the last 10 years?
    PROFITS EVERY SINGLE YEAR…..
    In the last three years they outperformed almost every other EMERA owned company in earnings per share…..something like $50M profit in 2013 according to BL&P website.

    Obviously EMERA wants something else from Barbados, and the answer can be found in the Government’s recent announcement that Bizzy will be able to sell energy from his renewable systems and that BL&P will NOT be getting any exclusive license for 40 years.

    You play that you don’t know how bullies operate?
    You never played cricket with a fella that owned the ball and bat?
    ….You expect to give him out LBW?


  6. @Bush Tea

    Forget profits what about capex provision to replace old equipment?

    Have you taken note Ian Carrington the Director of the NIS is Chairman of the Audit committee?


  7. @ David
    Forget profits what about capex provision to replace old equipment?
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Bushie bozie? um is Wily talking about ‘profits’…

    EMERA has to make a decision about major plant investments and they clearly will only do so if they are guaranteed continued milking of the L&P fatted cow.
    Without a guarantee of continued profits they are just looking for an excuse to pull up stumps and leave Bajans without any bat or ball….and with only some old stumps.
    LOL…. but no worry…Stinkliar to the rescue…
    The DLP will buy the abandoned stumps for hundreds of millions of dollars
    …pay additional millions to scrap them
    …borrow many hundreds of millions to buy new stumps, bat and ball
    …and then give them all to some other foreigner to start the process all over again

    …cause that is what brass bowls do.

    Mean this shiite was not OBVIOUS when we were selling off the shares for a fraction of their REAL value…???


  8. @ David
    Is this the same Ian Carrington who is responsible for the NIS?
    ….whose financials are years behind…
    ….whose computer systems have failed consistently after hundreds of millions spent by them?
    …who sold their shares in BL&P and invested in Four Seasons?
    …who had pensioners suffering

    What Audit Committee bozie?


  9. @Bush Tea

    See the note in the Holdings 2014 financials:

    Depreciation

    In 2013 depreciation studies were carried out in the utility
    segments of the Group. These resulted in reductions to the rates
    applied to the various asset categories thus lowering the overall
    depreciation expense in BLPC by $3.7M and in DOMLEC by
    $1.9M


  10. One cannot just blame EMERA, you have to blame greedy Barbadians who sold their shares to the highest bidder. We were told by a Canadian citizen Emera was the worst Electricity Company in Eastern Canada, but we still sold to them, so we are now reaping the fruits our our ignorance, and greed. Our Government Should never have sold BL&P to foreign investors, it is an essential service. The wealthy will live because they will put in solar power,but what about poor people, pensioners, etc., we are the ones who will have to go back to the kerosine lamps for light. Water should be another thing that should never sold out in developing countries, look at what is happening to our gas & oil industries, soon Barbados will not have anything they can call their own. Republic, yes, Banana Republic to the highest bidder.


  11. Let me put in my 2 cents worth as this is one area I know (work in the elec power business for 30+ yrs in Bds, Canada and US). BL&P has always worked well under private Bajan ownership. One of the most reliable utilities in the Caribbean for years. And run by solid Bajan expertise. A few points.

    First, I cannot understand why we don’t have a Liquidfied Natural Gas (LNG) supply on the island. Why are we still burning expensive bunker C or diesel oil when all the equipment can be easily converted to LNG fuel at least half the cost. LNG is transported to the U.S. and other places from Trinidad, including Dominican Rep and Puerto Rico. Evidence of NO energy policy in Bim. It can also be used to supply other business (even transport board buses) so there is no recurrence of the lack of gas for hotel kitchens that happened last year.

    Second, Bim needs to do for solar power what they did for hot water heating, panels on all houses. The cost of solar elec panels these days is far less than what a house is paying for residential rates with oil based generation.

    Finally, solar power coupled with utility power on LNG will create a very reliable and relatively (Caribbean comparison) inexpensive energy source that might even attract manufacturing back to the island. Bajans need to think outside the box and delete the “but…” from their thinking when ever new ideas are offered.


  12. I am pretty sure one of the BU family posted Emera references from the Canadian press and the Bahamian press.Don’t recall the Nova Scotia based newspaper that printed serious complaints about Emera.The point is that the present MOF and the Cabinet were in,as now,serious monetary and fiscal straits and would have sold to the devil if he had offered what Emera offered,almost double the existing share price,seriously undervalued at the time.Further,BL&P were doing so well with the FAC that they did not go to the regulatory authority for almost 25 years!!!!


  13. @Konkieman

    An aggressive alternative energy policy cannot be implemented without considering BL&P’s revenue expectation. This is what happens when you allow a national strategic asset to fall to foreign ownership.


  14. True David, but if you re establish local ownership with the right business plan to incorporate renewable energy it can work. For example, let the new utility get involved in installation and servicing panels. I agree Bim is too small for multiple owners of the power system, too inefficient for this. As much as I hate regulation, maybe dictating a level of return (8-10%) for an essential resourse may be the way to go for a small economy to be effective. Regulation does work in some cases.


  15. @Konkieman

    How can you regulate profit in a free market? Even it were possible there would be degradation of service so fast…

    This is where an intelligent and forward thinking union can be relevant.


  16. @Gabriel

    EMERA WATCH: Pay Up Or Power Down

    by David on March 18, 2012 in Blogging Edit

    Nova Scotia Power tacks seemingly arbitrary โ€œsecurity depositโ€ charge to customersโ€™ billsWatch your meter closely, or you might be in for a surprise by Miles Howe Having trouble paying your power bill? Be careful: donโ€™t fall too far behind on the wrong day, or you might just find a pricey surprise in the mail. Nova [โ€ฆ]

    Leave a Comment โ€ข Continue Reading โ†’

    Naughty EMERA

    by David on March 1, 2012 in BU Edit

    Reproduced from the Halifax Co-op It would appear as though there is significant upheaval occurring on the island of Grand Bahama, and once again, Emera, the Nova Scotia-based power company, is in the thick of it. Following an island-wide blackout yesterday, which rumour initially ascribed to โ€œindustrial unrestโ€ (but which a Grand Bahama Power Company [โ€ฆ]


  17. Thanks David

  18. St George's Dragon Avatar
    St George’s Dragon

    But BL&P is guaranteed a rate of return of about 10%. This is part of the FTC agreement. BL&P’s beef seems to be that their revenue is declining, so obviously their profit will too. That’s not good for a public ally owned company which needs to show year-on-year increases in profit to sustain dividends and therefore share prices.


  19. ants April 18, 2015 at 9:03 AM #

    Barbados and Bajans should buy back BL&P.

    it is an ESSENTIAL SERVICE.

    Barbados is a de facto first world Republic. Act like one.

    ………………………………………………………………………………………
    No fear! one day the people of Barbados will once again owned the BL&P, when Mrs Mac Donald can no longer carry home an annual bonus of CDB $5million, and the old engines at Spring Garden and Seawell have clapped out.
    Like Haggatts sugar factory,and the Dipper, we will be forced to buy “old iron.”


  20. ants April 18, 2015 at 9:03 AM #

    Barbados and Bajans should buy back BL&P.

    it is an ESSENTIAL SERVICE.

    …………………………………………………………………..
    And just a reminder that the Sanitation Service Authority is an essential service, so too are the Transport Board and the Queen Elizabeth Hospital.


  21. David

    Emera took effective control of BL&P when they bought the 38% shareholding of Leucadia. That was in march 2010. By July the same year they changed the CEO and before the end of the same ear, they divested their telecoms and fibre holdings.
    They did not need to increase their shareholding to the current 80 percent to do what they are currently doing.The only reason why they made a bid for a takeover and increase their shareholding was that they recognized the importance of BL&P and LPH for their regional acquisition strategies and as a way to exploit our double taxation law so that profits could be repatriated.

    To execute this strategy, BL&P must generate the growth in earnings and deliver a high return on equity (ROE) to their shareholders.

    BL&P net profits in 2013 were $44 million. Emera wants it to be $74 million in the next two years. This is an unusually high level especially when one considers that this is based on operating revenues of $192 million.


  22. Word is that BL&P may very well become DL&P in the coming weeks,that is Depleted Light & Power, as many of its employees,including many in ‘top’ management in the targeted age group have overwhelmingly opted for ”The Package,” and are set for disconnection with the company next Friday ,the 24th.

  23. Caswell Franklyn Avatar
    Caswell Franklyn

    Anthony Davis

    I have only just read this post and I can say without fear of contradiction that it is utter crap.

    Prior to the passage of the Employment Rights Act, Government, employers and labour agreed on a protocol which was always observed in the breach. Part of the protocol set out a procedure for laying off workers. The protocol was in essence binding in honour only. IT NEVER WORKED.

    With the coming into force of the Employment Rights Act a new regime was put in place to govern the lay off process. That procedure is now set out in law at section 31 of the ERA. The procedure is merely the enactment of that section of the protocol, with one notable exception. There is now no role for the Minister of Labour and the Prime Minister, as it should be.

    Instead of being binding in honour only, the procedure now has the force of law. BL&P like all other employers must follow the procedure set out in the ERA or the lay offs might amount to unfair dismissal. The company is required by law to consult with the workers or their representatives if they are reducing staff by 10% or some other significant number. Protocol my (expletive) the lay off procedure is now set out in law.

    Unfortunately, neither the BWU nor the blond Minister of Labour seem not to be aware of the contents of the Employment Rights Act. So far, BL&P has done nothing that offends against the laws of this country. BWU and the Minister of Labour have offended against common sense.

    If this protocol was so important, why did Government not follow it when it was laying off workers? And further, why did BWU not insist that Government follow the protocol.

    This noise that BWU and the minister is keeping is just sound and fury signifying nothing. All froth and no beer.


  24. @ Tony “Kite”
    There is a big difference between a 38% major share block and a clear majority share holding of 51% …..and even greater difference when holdings exceed 80%.
    That 38% block had been held by Canadian and US interests for decades now, but due to government minority interest, along with multiple small shareholders, this share block was forced to exercise a degree of discretion, and generally respected local interests.
    It was greedy local shareholders, led by government, who lobbied EMERA to buy their shares in search of a quick profit.
    EMERA took the offer because any idiot could see that BL&P was worth MUCH more than the asking price….. it was simply a bargain.
    Perhaps they subsequently saw the opportunity to use it in their attempt to exploit as many other regional utilities as possible…..but few others have been as gullible as Barbados.
    Even with impressive profit numbers and earnings per share better than most other EMERA companies, calls are made for staff cuts and/or rate hikes.

    A clear red herring…
    Having made impressive capital gains in the deal so far, they are faced with the choice of funding needed capital expenditure…..or cut their profits and run…

    Cuts in quality…
    Cuts in maintenance…
    Cuts in staff…

    Looks like “ready, set ….Go” to Bushie


  25. An old man told me of an old plantation house twhich was bought for a tidy sum, and under the cellar the new owner discovered a quantity of pure copper vats, which were used previously in the production of sugar. After these copper items were sold, he made almost as much money as he paid for the house.
    A similar thing,I heard, happened to EMERA when it took over the BL&P. They found quite a bit of coppers, in the form of $Millions belonging,part of some Caribbean utility insurance scheme. They got out licking ,to say the least.


  26. Didn’t the BWU pullout of the congress of trade unions? Has this undermined the social partnership?


  27. Here is a link to serve as a reminder what happened to Light & Power Co and Emera.

    http://www.ijac.org.uk/images/frontImages/gallery/Vol.2_No._1/3.pdf


  28. Why did the Board of LPH vote to accept $25 which $8 dollars less than the independent valuation by KMPG?

    Here is a link to serve as a reminder what happened to Light & Power Co and > Emera. > > http://www.ijac.org.uk/images/frontImages/gallery/Vol.2_No._1/3.pdf > > >


  29. @david, 7:35 am

    “Foreign exchange”

    @Caswell
    Good article. Facts are usually non-debatable.


  30. Hanky panky.

    On May 8, 2009 Barbados Light and Power Company Limited submitted an application to the Fair Trading Commission (FTC) for a review of its electricity rates. In January, 2010 the Commission approved a 10% rate of return with the requested capital structure of 35% debt and 65% equity. The newly guaranteed rate of return and the strong indicators pointing to continued growth made the company extremely attractive to potential investors, or for that fact, acquirers. Almost immediately after the FTCโ€™s decision, Leucadia sold its interests in LPH to Emera in May, 2010 affording Emera 37% ownership of the company and making them the largest shareholder.”


  31. @Observing

    How does anyone sell a key asset to support day to day spending?

    Hanky panky. > > ” > > On May 8, 2009 Barbados Light and Power Company Limited submitted an > application to the Fair Trading Commission (FTC) for a review of its > electricity rates. In January, 2010 the Commission approved a 10% rate of > return with the requested capital structure of 35% debt and 65% equity. The > newly guaranteed rate of return and the strong indicators pointing to > continued growth made the company extremely attractive to potential > investors, or for that fact, acquirers. Almost immediately after the FTCโ€™s > decision, Leucadia sold its interests in LPH to Emera in May, 2010 > affording Emera 37% ownership of the company and making them the largest > shareholder.” > > >


  32. @Caswell

    Of course we have the law but there is a Social Partnership…

    Hanky panky. > > ” > > On May 8, 2009 Barbados Light and Power Company Limited submitted an > application to the Fair Trading Commission (FTC) for a review of its > electricity rates. In January, 2010 the Commission approved a 10% rate of > return with the requested capital structure of 35% debt and 65% equity. The > newly guaranteed rate of return and the strong indicators pointing to > continued growth made the company extremely attractive to potential > investors, or for that fact, acquirers. Almost immediately after the FTCโ€™s > decision, Leucadia sold its interests in LPH to Emera in May, 2010 > affording Emera 37% ownership of the company and making them the largest > shareholder.” > > >


  33. @ David
    …an interesting paper, but too vague, general and incomplete in its analysis.
    It ignores too many basic human and other factors that would have influenced the whole exercise;
    ..the weakness of existing Board and management
    ..the extreme conservative management practices that depressed share values
    ..the personal share ownership of key players (purchased at the depressed value)
    ..the massive holding of cash in a self-insurance fund just sitting there
    ..the high levels of retained earnings
    ..the fact that for the first time in history, black management seemed imminent
    ..the inefficiency of LP Holdings which did very little but pay salaries and benefits

    Perhaps EMERA were almost forced to make similar purchase offers to the local share owners as they made for the 30% (generally offers to buy shares cannot be selectively made to different share holders) …because key players wanted to cash out their massive shares at that point…

    The reality is that with the imminent alternative energy revolution, most of BL&P’s assets will end up as stranded assets. The future calls for a major reinvestment in new technologies and approaches. Will Emera undertake such at high capital expense when they are not guaranteed monopolistic benefits? …or will they cut and run, …having already seized the copper vats and other goodies they realised had been lying under the cellars?


  34. @Bush Tea

    It is an academic paper and there was enough in the corporate governance review for the discerning to draw conclusions. The challenge will be how does the regulator manage/approve the transition where rooftops generate bulk of the power and the utility distributes. So far the FTC and government seem hellbent on protecting EMERA i.e. base load from fossil energy.


  35. So far the FTC and government seem hellbent on protecting EMERA i.e. base load from fossil energy.
    ++++++++++++++++++++++
    How do you deduce that when Darcy Boyce last week announced that generators of electricity from alternative sources (Bizzy) will be able to sell electricity under the new act?
    Did Emera get the extension of the monopoly rights they wanted?

    Why do you think they are threatening layoffs or rate hikes?


  36. @ Caswell
    You are correct about the union….
    Besides, EMERA are not looking to make enemies, just money. They have invited employees to take separation packages ..and from all reports there have been no shortages of volunteers.
    But these employees have been some of the most productive and efficient in Barbados – judging from BL&P’s past performance. So the employees may be happy to take the packages, but what becomes of BARBADOS…when the whole shiite falls apart? ..you got candles?
    The Union is far too late with too little…

    You are making the same mistake that they have……trying to REACT to the consequences of greedy business people rather that to PROACTIVELY influence events in the damn BOARDROOM.

    Rather than sit back talking shiite about wages, the union should have been encouraging workers to acquire more shares when they were cheap and to consolidate their ownership THROUGH the union to gain a position on the Board.

    THAT is how unions could be effective….not by scratching at crumbs left after the vultures have finished with the carcass….


  37. @Bushie

    What will change if the FTC maintains a tight cap on the rider(buy all). The alternative energy sector is poised for exponential growth.


  38. BWU going up a big conglomerate like Emera not going to be easy, this would mean a consorted effort with the help of employees and members of BWU working together pulling out all the stops , the chief honcho at BLP has already made it clear who she is going to punish if BLP does a not get its demand, now this will be the ultimate testing of Toni Moore to see how vigilant an convincing an activist she is in protecting her members interest and the interest of the consumers of BLP who will be the biggest losers


  39. @Bush Tea

    Maybe yo are not factoring the EMERA model elsewhere. The shedding of engineers may just to enforce their model.


  40. “….now this will be the ultimate testing of Toni Moore to see how vigilant an convincing an activist she is in protecting her members interest and the interest of the consumers of BLP who will be the biggest losers”
    ++++++++++++++++++++++++++++++
    Just what we need… two women fighting for personal pride under a female referee …with our national power utility at stake….

    We are well on the way to a Water works styled electric utility…..


  41. The BWU had their chance with the NCC fiasco and ERT. To this day Toni Moore and the BWU have refused to lock horns with the government on this matter. History will record how the NCC workers were treated by this government. Politics again!


  42. @ bush shite

    โ€ฆwith our national power utility at stakeโ€ฆ. OUR … who are the “OUR” … well last time i check majority rules…….
    the fact being the BWU is going to have to present a compelling argument borne out of a relevancy which undermines the conglomerates of BLP and focusing on a partnership which involves a company involvement in producing facts and figures to the Union that implies that negative action before dismissal of employees
    So far from what is being said Emera ‘barbados is dealing undercover which would lead one to believe that Toni is fighting an upward Battle going forward with an outcome that might have been already been sealed by the Company,,
    Only things left now are the war of words which would draw the govt( into) with another standoffish approach by govt not to make waves


  43. @Bush Tea

    please!


  44. Bush Tea April 19, 2015 at 9:07 AM #
    But these employees have been some of the most productive and efficient in Barbados โ€“ judging from BL&Pโ€™s past performance. So the employees may be happy to take the packages, but what becomes of BARBADOSโ€ฆwhen the whole shiite falls apart? ..you got candles?
    …………………………………………………………………………………………………..
    We will follow in the footsteps of LIME, and bring in technicians from India and some Caribbean countries, who are in no way ,as well trained as the BL&P’s technicians, and when these ‘knot hole stoppers ‘ encounter serious problems, Mrs Macdonald will call on the retrenched Technicians to come out,for a day’s pay and pull them out of the do do .


  45. @all
    The unions have to keep some noise, if not their irrelevance would be known. Let’s see what happens if the employees accept the “package” rather than fight.

    @david
    It made no sense but when you’re in a pickle you would probably even sell your ass as well as your assets.

    @caswell
    Has the CCJ judgment been ventilated in trade union circles given its mammoth significance?


  46. Saturday’s Sun highlighted the atrocious urban decay and filth in the area know to most Bajans as the Old Eye Hospital, an important link between the UNESCO Heritage sites of Bridgetown and the Garrison.
    What has this to do with BL&P ? Cast you mind back to the last days when the BL&P was managed by locals, and greatly owned by local shareholders. At the open location west of the Old Eye Hospital,there was a giant billboard, announcing a joint venture between the Barbados Light and Power Company and the Barbados Board of Tourism, in the development of the Bay Street seaside area stretching from the Old Fish market to the Careenage.
    This grand project was the second casuality of EMERA’s take over. Profits made in Barbados are not for the benefits of Barbadians or Barbados.


  47. One thing in the Emera plan that really caught my attention was their vision to make Barbados a model for the world, a true green destination and green economy

    http://www.nationnews.com/nationnews/news/66072/agree-renewable-plan#sthash.QqKFmkRr.dpuf

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