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Bruce Telecom plans to cut wages by three per cent |
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Staff, management and the board of directors at Bruce Telecom are all looking at a three-per-cent cut in their pay. The company is presenting a report on its 2010 budget at the Kincardine council meeting tomorrow night (Feb. 3). The budget has been prepared based on acceptance by management and staff of a three-per-cent reduction in wages which would save the company $350,000. The budget also reflects the elimination of two management positions, partially offset by the creation of an administrative role, resulting in a savings of $65,000. The board of directors will also see its compensation reduced by three per cent, consistent with reductions agreed to by management and currently being considered by unionized staff. Year-over-year costs are planned to be about two-per-cent lower for the outside plant which includes construction, installation and repair, building maintenance, vehicle maintenance, plant supplies and plant overhead. Significant decreases in locate costs are planned as a result of the addition of one tech position. This decrease is offset by increases in other areas: building costs are anticipated to increase as a result of the need to paint the administration centre in Tiverton and the additional hydro and other costs related to the installation of two new remotes; expenditures on safety and training are also increasing.
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The Harmonized Sales Tax (HST) will have a positive impact on costs in this area in the latter half of the year. Based on the proposed methodology, which council approved at its Jan. 27 meeting, the current performance would yield an estimated dividend payment of $720,000 for 2009, down significantly from the original estimate of over $1 million. Achievement of the 2010 budget would yield an estimated dividend payment of $910,000. Bruce Telecom board and management recommends a 2010 distribution of $800,000 to be paid in quarterly installments in March, June, September and December. The entire report will be presented at the Feb. 3 council meeting.
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