The Birmingham Times
Central Alabama Water (CAW) on Friday implemented a corporate reorganization, leading to the loss of jobs for nearly a quarter of its employees. It also made the decision to close its payment center and the Cahaba Museum & Conference Center.
More than 135 people — representing 23% of CAW’s workforce — were part of a reduction in force. Additionally, 76 vacant, funded positions were eliminated for a total reduction of 211 funded positions.
Shortly after the announcement was made on Friday, some newly-fired employees were joined by politicians, community activists and local union leaders at an impromptu press conference.
“We need to stand our ground,” said Cassandra Patterson. “I’m going to stand with these employees whether I’m up here or not.”
Patterson said she was called into a meeting and told she had to retire, and said has until April 27th to sign her severance papers.
All divisions were impacted by the layoffs. After Friday’s actions, CAW will employ 449 people. The reorganization is estimated to save the utility approximately $20.1 million per year in labor-related expenses.
“This was an extremely difficult decision, but it was absolutely necessary to maintain the organization’s financial viability,” CEO Jeffrey F. Thompson said. “We developed this plan after months of deliberation, careful analysis and assessing both the utility’s immediate and future needs. This reorganization has obviously impacted the lives of these employees and their families. I greatly appreciate the significant efforts that each employee made to serve our customers.”
In an effort to avoid increasing rates, CAW needs to reduce both its capital and operating expenditures. Without taking these actions, CAW would be forced to implement a substantial rate increase of approximately 10%. Several other factors necessitated the reorganization.
“Our enabling legislation makes it clear that CAW must take a markedly different course from our predecessor organization,” Thompson said. “Our customers are counting on us to take the steps necessary to reverse financial trends established over many years and to emerge stronger and better equipped to provide the world-class service they deserve.”
Payment Modernization
As part of the reorganization, CAW’s physical payment center, like those of many other utilities, is closed. Customers are strongly encouraged to establish service, pay bills and handle other matters via CAW’s new secure website, caw-al.gov. Those who wish to make payments in-person may conveniently utilize any local Walmart’s Money Center. Customers can pay online without incurring any fees simply by logging in to their account and connecting their checking account. Click here for more information about payment options.
Cahaba Museum & Conference Center
The Cahaba Museum & Conference Center will temporarily close as part of the reorganization. CAW will reach out to those who have events scheduled.
About Central Alabama Water
Central Alabama Water serves customers in Jefferson, Shelby, St. Clair, Blount and Walker counties. It operates four water treatment facilities and maintains more than 4,150 miles of water mains in its distribution network. Please visit caw-al.gov for more information.
