Bahamas Electricity Corporation

The Bahamas Electricity Corporation (BEC) is a government owned corporation. The corporation supplies electricity in the Bahamas except for the Grand Bahama and Inagua where their supply of electricity is outsourced. (www. fortune. com, 2005). The current minister in charge of its operation is the curate of Public Works and Utilities, Phenton Newmour. Its current general manger is Kevin Basden. The Corporation was founded in the year 1956 through the demesne of the Bahamas and Electricity Act. In the year 1994, there have been some(prenominal) issues in the Bahamas Electricity Corporation regarding the decadency of the employees.There are also issues regarding the pull throughment of the agreements that the corporation had promised to its union members. The following problems would be discussed in the next hardly a(prenominal) paragraphs II. corruptness inside BEC In the year 2004, it had been stressed in an article written by Candia Dames that Corruption had struck in the BEC . Loss of just about $100 million over the last five days had been estimated. According to Dames (2004),these losses was due to the business persons and BEC employees conspiracy that involves the practice of meter tampering. In the year 2003, the spick-and-span figures reveal that the telephoner had lost a essential of $ 18.54 Million in non-technical losses. New Providence accounted for 79. 82% or $ 14. 79 Million in losses and 20. 19% or 3. 75 Million Dollars. workable consequences that could happen because of these assumed conspiracy is that the reputation of the partnership could be torn to shreds and as such, the peoples trust would definitely decrease. It had been further explained that the gild had used several countermeasures to avoid further losses. According to Ms. Dames, the familiarity would be putting a new electricity consumption meters which is claim automatically.The meters would be put into mail and a precautionary had also been added as a feature of the meters which can be read automatically. another(prenominal) reason why this particular device had been chosen is because the troupe would want to avoid the BEC workers to under read the meter which had been a cause of the losses that the attach to had incurred. III. Union Destabilization According to the article, the BEC needed to fulfill its side of the contract in Bahamas Electrical Workers Union. At the end of 2003, the union members in BEC had made several demands to the companionship.Among the issues that they wanted to be resolved are wage increases and improved pension funds. Current contribution that the company makes amount to 13%of each workers salary to the pension fund. However, an actuarial report had been shown about the pension fund. It shows that the company is not putting enough money for the pension funds of the employees. Based on the report, the underfunded amount is slightly $22 million. The solution that the company had thought of is to makeup for the shortf alls of the company by increasing contributions to 16. 6%.Computing the total annual increase, the 16. 6% shows an annual increase of $4. 5 million to $5. 7 million. Even though the company had already established this, the union had still demanded for an increase of 26. 2% which means that the annual contribution must be $7. 6 million. The company had declared that they are not capable of paying a real large amount of 26. 2%. The article reveals that a merit trunk for the workers is being pushed to an agreement. The merit system works to reward the employees beginning in the third year of the contract.The salary increases between 3 to 8% based on the job performance. IV. Conclusion V. Points to Ponder To analyze the case it is important to have points to gestate about in order to have a deep analysis of the case. First question about the case is about the solution that the company had thought of in order to reduce losses. Is the solution of changing meters a good solution? . A nother question that could be addressed is that Since the problem in the company had rooted from unethical practice, shouldnt the solution involve ethical training of the employees? .Third question for the case is that Was the company transparent about the fact that they were not able to pay for the pension fund? . The transparency of the company must be shown in this case because if this is established, it can be concluded that the company is open to its monetary situation. Being open about the status of the company is being honest to the employees. Lastly, there had been several comments on the reward system that must be established. The question for case analysis is Shouldnt there be an evaluation system for the employees in a frequent basis such as quarterly, monthly? just about companies use the performance evaluation as a means to increase the salary of the employee and at the identical time to determine whether the employee deserves to be promoted or trained to improve his or her performances. REFERENCES Dames, C. 2004. Corruption Rocks BEC. Retrieved last borderland 20, 2008 from Geocities. Website http//www. geocities. com/bzephyr2002/BECC. html Fortune. 2005. Bahamas Electric Corporation. Retrieved last March 19, 2008 from Fortune. Website http//www. timeinc. net/fortune/services/sections/fortune/intl/media/2005_11caribbean. pdf