Manitoba Hydro will offer a voluntary departure program to its employees in support of its previously announced plan to significantly reduce its overall workforce.
The announcement comes as the corporation completed a further review of its senior management structure, resulting in a significant streamlining of positions reporting directly to vice-presidents and an elimination of 15 per cent of the positions reviewed. The number of vice-presidents was previously reduced by 30 per cent through an executive restructuring in February.
The senior management changes and voluntary departure program are the latest steps in a process to significantly transform the organization that began last September after a review by the Manitoba Hydro-Electric Board identified the need to address the serious deterioration in the corporation’s financial health.
Manitoba Hydro committed to reducing its workforce by approximately 900 positions and to pursue further operating efficiencies as a necessary first step to strengthen its financial performance. In addition to these additional cost efficiency measures, Manitoba Hydro anticipates making a General Rate Application for increased electric rates to the Public Utilities Board (PUB) and expects to file the application by early May 2017. Both cost reductions and revenue increases are required to address the financial challenges facing the company, details of which will be outlined in the application to the PUB.
“The voluntary departure program is the preferred first step to achieving our target workforce reduction,” said Kelvin Shepherd, Manitoba Hydro’s President and Chief Executive Officer. “It’s fair to our employees, providing a financial incentive to those who choose to voluntarily leave the company.”
The voluntary departure program will be offered beginning Monday, April 10, and available for six weeks. The majority of Manitoba Hydro employees will be eligible to apply and be considered for the program.
“Reducing our costs is important but maintaining safe, reliable service to our customers remains paramount,” said Shepherd. “To build a stronger, financially-stable, more customer-focused Manitoba Hydro, we will need to continue to have a strong base of skilled and talented employees to run the business and serve our customers, and I am confident that this voluntary departure program is one way to help us achieve that goal.”
