PPL Responds to Realignment Concerns

PNG Power Limited has responded to criticism and concerns raised by the PNG Energy Workers Association (PNGEWA) in the media over structural realignments.

The realignments are being implemented by PPL through its Refocus Initiative

PPL Managing Director, Flagon Brekker said the PNGEWA’s expressed fears are groundless.

“PNG Power is just one of the State-Owned Enterprises (SOEs) that the government, through the NEC decisions NG129/2019 and 104/2020, is committed to reform to improve its service delivery and financial returns. Our Refocus activities are part of these reforms, which will necessarily result in changes throughout the organization. SOE reforms will enable PNG to continue to draw down support funds from the ADB and other international developmental agencies,” Brekker said.

He added, “The most important point is that the changes being envisaged at PPL will in fact result in more jobs, not less. PPL management and the board see the Union as a valuable partner – partner in meeting the goal of giving at least 70% of the PNG population access to electricity.”

Brekker also stated that he fully understood why the union may be concerned that its members will be disadvantaged by the possible changes that have been flagged in discussions held about reform and refocus of PNG Power, but said there is regular communication between PNG Power Management and the PNGEWA, through the Employee Consultative Committee (ECC).

He said, “Since late 2020, ECC meetings have been held monthly, where PPL matters have been discussed in close consultation with the union. Union concerns have not gone unheeded and are addressed mutually. Management had reviewed shift work arrangements and recently approved CPI salary increases for 2019 and 2020 retrospective back pay. The current concerns raised by the union were subject of a recent committee decision, agreeing that a presentation be made to union executives on the Refocus Initiative.”

In explaining the Refocus strategy, Brekker said the changes will retain and increase the number of employee, adding that PPL has already added positions to their current structure and will work with the union to achieve this and the starting point is the PPL Refocus Strategy.

“This will drive the customer orientation change in our culture. It will put the right people in the right places. Nationally, putting our customer first. As I have said in many Town hall Meetings with PNG Power staff, we have many challenges to overcome. Retail tariffs were frozen in 2013, so that although all our costs have risen annually with CPI, our income unfortunately has not. We are also owed a huge amount of money by government departments. Past years of lack of maintenance is causing disruptive blackouts. We all have to work together to overcome this,” said Brekker.

Photo credit: PNG Power Limited

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