That's twice the number first announced several weeks ago, although not all 200 are expected to accept the package, says a utility official.

"The word has been they will obviously take operational concerns into consideration," John McLaughlin, manager of media relations for NB Power, said Tuesday.

"They could effectively say no to someone if there is a big take up," he said. "But our best guesstimate and management believes based on past practices "¦ (we) will do everything (we) can to accommodate everyone."

On April 10, NB Power first announced its plans to save $20 million a year by reducing the utility's number of vice-presidents from eight to five, cutting management and administrative staff by 20 per cent through attrition and voluntary early retirement, reducing outsourced services and reviewing term and casual positions.

The move came after the Liberal government asked NB Power to hold any new rate hike to a minimum.

The utility said in April it was targeting a reduction of 100 staff, 90 of whom would come from NB Power headquarters in Fredericton. It also announced it was raising its rates by three per cent this summer.

McLaughlin said the package is being offered to non-union staff.

"We've offered it to approximately 200 employers who fit the criteria," he said.

"The thinking is that probably half or more will take it.

"It is the same package we offered in 2004. It is pretty well standard across the industry."

The deadline to accept the package is the end of June, he said.

"It is all about minimizing our costs."

There will also be a management restructuring, he said.

"We are not going to refill most of these positions."

The retirement package is offered to employees who have a combination of age and years of service equalling 75 by Dec. 31, and includes one week's pay per year of service up to a maximum of 26 weeks.

Employees can also buy up to five years of additional pensionable time to avoid a three-per-cent-a-year penalty for retiring before age 60, said McLaughlin.

Ross Galbraith, business manager of the International Brotherhood of Electrical Workers Local 37, which represents 2,200 unionized employees at NB Power, said Tuesday that, even though his members aren't directly affected by the staff reduction program, he has some concerns about the restructuring.

"The same amount of work has to be done," he said. "How will the work be shuffled around?

"That is always a concern."

Galbraith said his union hasn't been approached about reducing the number of its members at NB Power.

"The bargaining units that I represent are very lean," he said.

"There is really no more to be taken out of it.

Published Wednesday May 5th, 2010

NB Telegraph Journal
Posted May 05 2010, Source ,