A disagreement between employees and the Anguilla Electricity Company (ANGLEC) Board, over a demand for five percent of profits as a bonus, which resulted in a strike by some workers, is still unresolved although the employees have returned to work.
The strike occurred on Thursday, November 29, when workers, bearing placards, converged outside the company’s Administrative Building in The Quarter and remained there throughout the day, attracting much attention from the public.

Scene of striking workers at ANGLEC’s Administrative Office Building

Chairman of ANGLEC’s Board of Directors, Rodney Rey, issued a press release on the above date on the matter. Among other things he pointed out that the award of a bonus was at the sole discretion of the Board and that an earlier communication had informed the workers that they would be paid one month’s salary as a bonus in December.

On Tuesday this week, December 4, the workers, through their staff representatives, issued a press release acknowledging that they were aware that ANGLEC’s net profits belonged to its shareholders and that it was unusual for employees to share in those profits. They said however, among other matters, that workers in other Caribbean territories were benefiting from profit-sharing as a reward for their hard work and the growth of business.

In order to provide balance in reporting on the issue, The Anguillian has undertaken to print both releases for public information beginning with the one from ANGLEC’S Board.

Scenes of the strike at ANGLEC’s Administrative Building

“This morning (Thursday, November 29) some employees withdrew their labour in support of a demand for 5% of the Company’s profits as a bonus. The Board had earlier communicated to the employees that the Company would pay one month’s salary as a bonus.

It must be noted that the award of a bonus is at the sole discretion of a Board. In ANGLEC’s case, consideration must be given to:-

(1) Our responsibility to our shareholders.
(2) The ongoing re-investment programme which is being financed out of our internal financial resources.
(3) Our obligations to our lending institutions which are governed by our loan covenants.

Scenes of the strike at ANGLEC’s Administrative Building

Furthermore, our financial statements are done in accordance with international accounting standards, some of which state clearly that one month’s salary is a fair reward/bonus for the employees during the year 2007.
ANGLEC’s compensation package includes the standard benefits such as generous leave provision, uniform allocation etc…In addition ANGLEC provides the following:

1) Non-contributory Health Insurance for employees, spouses and dependents
2) Pension fund with 5% matching contribution by the employer

The Company has been sensitive to the impact of the rising cost of living on employees’ salaries. Consequently, over the past year, increases have been made to employees’ compensation packages which include a 15% increase in salaries/wages to ensure that we continue to pay competitive rates.

ANGLEC’s employees also receive annual performance increments averaging 3% on basic pay.

The Company has also agreed that with effect from January 2008, it will introduce a Cost of Living Allowance at a rate of 3.5% of basic pay.

The Board therefore views with concern the unilateral decision of some of its employees to assemble outside the Administrative Building and refusing to perform their assigned duties.

We trust that the above information would provide the Board’s perspective on the matter.”

The press release from the Staff Representatives is as follows:

“On Thursday 29th November 2007, the Staff of the Anguilla Electricity Company exercised industrial action in protest to the Board of Directors’ response to a request of 5% of the ‘net profit.’ This request was initiated by the Staff Representatives in December 2006, as an incentive for staff for their hard work, which would be paid across the board, as a bonus annually in December.

Anglec has a work force of approximately 77 persons and approximately 70 of these are permanent employees.

We are quite cognizant of the fact that the ‘net profit’ belongs solely to the shareholders of the company and that it is not the norm for employees [to] share in profits. At the same time it is not exceptional nor unusual for an agreement to be put in place for employees to share in profits. Employees in territories like Jamaica, Trinidad and Tobago have for years benefited from profit sharing schemes designed to reward them for their contribution to the growth of the business through their hard work and dedication.

In Anguilla there is precedent for what we are asking. There are a few businesses and firms who, apart from end of the year double salary as bonus award, award their employees a share in profits as well. This is noble and it is the standard that Anglec’s employees are asking the company to embrace. We see a real opportunity for Anglec to lead on this issue as a major employer.

Where this scheme has been implemented it acts for the most part as a tool for empowerment of the employees. Reward sweetens labour. The press release issued by the Chairman of the Board of Anglec gave four reasons for declining the request for 5% profit share.

1. Their responsibility [to] the shareholders
2. The ongoing re-investment programme which is financed from internal revenues.
3. Anglec’s debt obligations to lending institutions.
4. Limitations on Anglec’s ability to distribute profits to comply with International Accounting Standards.

What they have not stated honestly is that the Board had agreed to the 5% of annual profits as a bonus. The Staff Representatives were advised of this decision of the Board in a letter dated 19th July, 2007. The conflict has come about because the Board imposed a condition upon the agreed 5% of annual profits which was clearly inconsistent with the agreed 5% and was therefore unacceptable. This is the ‘gravamen’ of the issue which we asked the Board to take before the shareholders for resolution.

To quote from the letter of July 19th 2007, which was written by Chairman, Mr. Rodney Rey:

“On the question of bonus at the end of the year it was agreed thatat least 5% of annual profits be catered for, but capped at one month’s wages and salaries which will be included in the December payroll.”

Having agreed to at least 5% of annual profits to be given to the workers as bonus, any attempt to reduce it by a cap of one month’s salary to each employee, was repugnant to the spirit and intent of what was negotiated and what was agreed to by the Board. Further it was an inequitable or unfair mechanism as the largest portion of the amount of the profit share would go to the highest wage earners whereas the common sentiment of the majority of the employees is that the profit share bonus should be split equally across the board.

As Staff Representatives our mandate is to take this issue further. The hardworking employees of Anglec are asking to be treated fairly and justly and are asking that a commitment once made must be honoured.”

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