
Umeme is expected to exit the electricity distribution market at the end of its concession in March. Photo / File
At least 500 members of staff of the power distribution company Umeme will have no jobs come April 1, when the Uganda Electricity Distribution Company Limited (UEDCL) takes charge of control of the supply of power to end users.
However, Ms Ruth Nankabirwa, the Minister for Energy and Mineral Development, told our sister media house, NTV Uganda, in an interview on Tuesday, that only about 190 Umeme employees will be rendered redundant come March 31 when Umeme’s 20-year concession to distribute, sell and supply electricity in Uganda, ends.
But a look at Umeme’s staff structure and the one that UEDCL unveiled suggests that the number of those who will be out of jobs will be much higher than the figures that the minister unveiled on the sidelines of an orientation workshop for new members of the parliamentary Committee on the Environment and Natural Resources in Kampala.
Changed structures
Most of the redundancies, our sources revealed, have been a result of the shrinking of the staff structure. Mr Paul Mwesigwa, the UEDCL managing director, conceded that the structure had been shrunk, but that it was in line with the existing technology and with the approval of government through the Electricity Regulation Authority (ERA).
“The structure we are filling was approved by the shareholder and the Board and cleared by the regulator (ERA). It is based on efficiency and technology that was envisaged in the industry. It is expected to produce the most efficient power supply. It is mainly relying on digital, people and the environment,” Mr Mwesigwa said.
Our sources, however, indicate that whereas Umeme had for more than 20 years developed a structure to accommodate a total of 3,200 people, 2,000 of whom are permanent staff, the structure that was released by
UEDCL in January this year provides for only 1,500 members of staff.
That means that at least 500 employment positions have been phased out. The fate of the 1,200-contract staff remains unclear. Minister Nankabirwa, however, defended the reduction in numbers on grounds that there was need to avoid duplication of roles.
“Because we have to do away with duplication, we have positions that have fallen redundant. Those we have to remove; otherwise, we shall not be efficient,” Ms Nankabirwa said in the interview with NTV.
ERA accused
However, Umeme employees now accuse ERA of having approved of what they believe to be a defective structure, an accusation which Mr Jeje Wandera, the spokesperson of ERA, has since dismissed.
“These allegations on staffing structure don't merit a response. Please treat it as idle talk. There is no way a regulator, who has supervised a well-functioning sector that has won recognition globally, can turn around and approve a negative impact,” Mr Wandera said.
According to our sources, whereas the Umeme structure had been developed to allow for career growth and development for staff aligned to both the commercial and technical arms of the company, with area managers and engineers heading the different arms, the structure that was unveiled by UEDCL does not cater for that.
There are also concerns that whereas the Umeme structure had been grown over time from a small number that served the 280,000 electricity consumers who were connected to the grid when its concession began, to the 2.3 million consumers who are currently connected to the grid, the numbers in the UEDCL structure is not suited to deal with the numbers. Sources also alluded to the understaffing of key departments.
“The call centre has been given very few numbers. The same applies to the front-facing staff. They also did not provide for a digital manager or staff to handle complaints relayed on digital platforms like WhatsApp,” a person familiar with the structure told this publication.
Ms Nankabirwa sought to allay those fears last week when she suggested that some of the Umeme staff who have not been offered jobs can be recalled when needed.
“We will keep them (affected staff) on a special list so that, you know, when need arises, we call on them. We can even recommend to contractors those people who have been working within the network to be given the first priority,” she said.
Cries of foul
Some of the Umeme employees are now accusing the management of UEDCL and officials in the Ministry of Energy of reneging on promises made regarding the Umeme-UEDCL transition and staff recruitment process.
It should be remembered that Mr Mwesigwa told members of the parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) on July 19 last year that UEDCL would need to hire at least 3,000 workers to manage the distribution after Umeme’s exit. The priority, he said, would be given to Umeme staff.
“Currently, we have 490 staff, but our business model requires us to accommodate up to 3,010 employees to take over Umeme’s operations. Umeme has 2,502 employees, based on our discussions with them. We will engage all of them, and those willing to join us will be interviewed and given appointments at UEDCL,” Mr Mwesigwa told MPs.
Mr Mwesigwa reaffirmed that position in a December interview that was widely publicised.
“We intend to give Umeme staff priority when recruiting new workers. You have to understand that the task that awaits us needs at least 3,175 workers. So, when we add Umeme’s 2,500 workers to the 515 currently employed at UEDCL, we will be close to that figure,” he said.
He is now being accused of having reneged on those commitments.
Questions
Questions are also being raised about how the staff recruitment processes have been managed. Two separate dossiers allegedly sent to the ERA and the Inspectorate of Government (IG), copies of which this publication has seen, allege bureaucracy and rigidity that have led to loss of expertise and talent.
“UEDCL’s transition from Umeme is far from seamless. Over 400 experienced Umeme staff are being left out of UEDCL’s structure due to bureaucratic hurdles and management rigidity. Among those affected are key industry experts whose exit could weaken UEDCL’s operational capacity,” one of the dossiers read.
The dossier named some of the industry experts who will be lost as Mr Allan Kamba, a System Control and Primary Plant expert, who is instrumental in power stability; Ms Victoria Namubiru, a metering technology specialist, who designed and implemented prepaid metering for high-voltage customers, a system which did not exist before, and; Mr Abby Gwaivu, a seasoned distribution expert responsible for industrial areas and suburbs around Kampala.
The same dossier claimed that the energy sector was due to lose key talent due to UEDCL’s insistence on recruiting only engineers who hold degrees and those who registered with the Uganda Institute of Professional Engineers (UIPE).
“Some engineers were a few months away from completing their degrees yet were disqualified due to rigid policies. Others were in the final stages of registering as professional engineers, a process that takes months, if not years.
There are signs to suggest that the UEDCL leadership actively sidelined experienced Umeme staff to reduce competition for its existing personnel,” the dossier said.
The same dossier also alleged that the number of positions that Umeme staff could apply for was unilaterally dropped from three to two, but Mr Mwesigwa says it was on the advice of the Ministry of Public Service that it was done.
“We had in our preliminary discussions before inviting applications proposed three positions, but the ministry guided that a candidate could only apply for up to two positions,” Mr Mwesigwa said.
They further alleged unfairness in the composition of the interview panel. UEDCL, they claimed, had more representatives on the interview panel, which disadvantaged the Umeme staff, a claim that Mr Mwesigwa dismissed. He pointed out that at some point, panels made up of only people from UEDCL ended up giving more jobs to people from Umeme.
“The panel that was formed to interview chiefs and heads of departments was made of members of the management team and the Board of UEDCL. Eight candidates were selected and six were from Umeme. Only two were from UEDCL. How do you explain that?” Mr Mwesigwa asked.
Umeme staff are, nonetheless, asking ERA to intervene and cause a review of the process.
“Both ERA and the IGG must expeditiously and urgently take action to halt the ongoing flawed interview exercise being conducted by UEDCL management and address the pertinent and genuine concerns raised,” the dossier stated.
Mr Wandera told this publication that he had not yet seen a copy of the said petition.
“I am not sure there is a petition, but if there is one, then the board will dispose of it as appropriate. Let’s wait for the board decision in that regard,” Mr Wandera said.