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K1.1b for housing
By TERENI KENS
STATE-OWNED company PNG Power will have to fork out a massive K1.1 billion annually to pay its employees housing allowances despite dreadful power woes being experienced in two of the country's major cities. This follows Friday's signing of the Enterprise Agreement between PNG Power Ltd (PPL) and unions, PNG Energy Workers Association (PNGEWA) and Public Employees Association. The signing of the agreement, which replaces the 2003 Enterprise Agreement and 2006 Memorandum of Agreement, complies with 2007 Memorandum of Understanding to address workers' terms and conditions of employment, benefits and other policy relations. It also enhances business efficiency and productivity and increase the commercial success of the company. Though no detailed summary documents were given to the media on the actual terms and conditions of the agreement, it is understood housing allowances have increased by 58 percent (K110) from the current K190 to K300. And with more than 1,400 employees in 24 establishments in the country, PPL will have to pay an estimated K420,000 per fortnight or K109,20,000 per year. Also sources within the organization have revealed that remuneration packages for senior executives have doubled or otherwise are paid lump sums of salary and allowances in a year. The direct result of increase in housing allowances according to sources is that the company is currently undertaking to sell most of its institutional houses, forcing employees to seek accommodation elsewhere. However, some employees have raised concern that the increase would have no impact on their wages compared to senior executives given the acute urban housing shortage and excessive rental rates and housing prices. While the news of increases in housing allowance and salary sounds good for all employees, the quality of providing electricity is very poor. Certain business houses in Port Moresby and Lae have raised serious concern of losing business due to frequent 'blackouts' experienced in almost any day of the working week. They have called on the monopoly company to get to the bottom of addressing all the power woes. But some employees of PPL which Sunday Chronicle managed to talk to have admitted that they cannot do much because their welfare needs were not met by the current PPL board. Attempts to bring this issue before Acting Chief Executive Officer Tony Koiri for comments after the agreement signing on Friday were unsuccessful because the media was deliberately barred from asking questions. Meanwhile, recent business surveys have confirmed that the access and reliability is a serious problem despite PNG having the lowest electricity price in the region. |
NEWS
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