Temporary layoffs inexcusable when Manitoba Hydro expecting to profit during a pandemic: NDP

Manitoba NDPLeader Wab Kinew saysit is inexcusable that 200 employees at Manitoba Hydro will betemporarily laid off when theCrown corporation is expecting to profit this fiscal year.

Hydro president and CEO Jay Grewalsaid Thursday the utility is forecasting $47 million in profit, even after the pandemic ravaged the economy and softened electricity demand in some sectors.

The estimate suggests there's no reason for labour cuts, Kinew said.

"What the CEO told us is that Manitoba Hydro is making money right now and they would still be making money on the year if they kept everybody working," Kinew told reporters, following ameeting of the standing committee on Crown corporations.

Hydro is going ahead with four-month layoffs for 202employees many of them front-line workers to meet provincial demands to cut labour costs.

The Progressive Conservative governmentdirected the utility to find $86.2 million in savings to help the Manitoba government respond to the COVID-19 pandemic.

Layoffs 'unfortunate,' but unavoidable: Hydro

Grewal called the layoffs "unfortunate" on Thursday, but said the corporationhad nochoice when it couldn't agree on a different methodfor labour cost savings with twounions.

Other employee groups at Hydro settled on three unpaid days in lieu of layoffs.

Despite repeated questioning at the legislative committee hearing from Kinew and NDP Hydro critic Adrien Sala, Grewalrefused to bite when askedif the 200 temporary layoffs would detrimentally affect the utility's operationsin any way.

She said there would be no impact on the servicethat customers depend on, however.

Grewal noted some staff would be redeployed due to the temporary layoffs, but she didn't answer if any projects would behindered.

"We have the ability in a four-month period to redeploy," Grewal said.

Kinewsaid there's no question that work will be delayed.

"Maybe they're going to pull people to help ensure that new housing construction continues, but what's going to happen to the area that they were pulled from?"

Hydro's boss told the hearing she did not tell the government to reconsider its demand for workforce savings.

"We're in extraordinary times," she said, referring to the pandemic. "Every member of government stepped up to do their part."

While Grewal said the Crown corporation's financial picture should be considered as part of the government's finances as a whole, she said Hydro was nottransferring any of its mandated savings into provincial coffers.

Early in the pandemic, residential energy consumption spiked by nine per cent, Grewal told the committee. She said demand subsequently dropped in the industrial and commercial sectors, but not to the degreeHydro had forecasted.

She estimates COVID-19's impact on Hydro's bottom line would be$26 million.

New transmission line online

The corporation's presidentalso updated the meeting on the status of several transmission projects, all of which are expected to be completed on budget.

TheManitoba-Minnesota Transmission Project began operating onJune 1. The $490 million projectwill link generating stations in northern Manitoba through the Bipole III transmission line and across the U.S. border.

The Keeyask Generating Station is on schedule and on budget. The massive $8.7 billionproject, along the Nelson River, is expected to be in service this fall.

She said construction on the BirtleTransmission Project, running from western Manitoba into Saskatchewan, will start this month. The price tag is estimated around $60 million.

Grewaldid not answer media questions after the hearing. She said she didn't have time because she had a meeting with government officials.