October 13, 2011

St. Louis, Mo. The Utility Workers Union of America, AFL-CIO, announced today launch of a website designed as a community resource for citizens in Arnold, Mo. opposed to privatization of the City’s wastewater system to Missouri American Water.

The site – www.StopArnoldSewerSale.com – includes an analysis of major flaws in the proposal by the for-profit company to purchase the system, especially the dramatic rate hikes that would be directly caused by the proposed sale.  The website also includes tools for Arnold residents to speak out against the sale, including contact information for City Council members.

“Any sale of Arnold’s sewer system to this profit-driven company would be a bad deal for Arnold ratepayers,” stated Tom Schneider, President of UWUA Local 335 in St. Louis.  “This website is an educational tool for Arnold citizens to learn more about this flawed sewer sale scheme.”

The City of Arnold is evaluating a sale of its sewer system to Missouri American, a subsidiary of New Jersey-based American Water.  Although the City has made no final decision, it has contracted with an engineering firm to study the potential value of the system in preparation for a possible sale

According to the proposal submitted by the company to Arnold last month, the proposed scheme would be contingent on the City imposing a nearly 20% hike in ratepayers’ sewer bills before the sale is completed.  The contract would also prohibit the City from opposing any future rate hikes requested by the company before the Missouri Public Service Commission.

American Water has a history of excessive rate hike requests. In nearby Cedar Hill, Mo., the company has raised sewer rates more than 94% over the past four years.  Missouri American is currently seeking permission from the PSC to hike Cedar Hill sewer rates an additional 31%.

The UWUA represents 2,500 employees of American Water across the U.S., including in Missouri and in ten other states.  Many of the Union’s members in the St. Louis area live in Arnold.

UWUA members at American Water have first-hand experience with the company’s philosophy of placing corporate profits ahead of all other concerns.  In St. Louis, for example, members of UWUA Local 335 have been working without a new labor agreement for months because of management demands to impose unfair concessions, including the unlimited right to eliminate every employee’s job through outside contracting.

The UWUA has campaigned against excessive American Water rate hikes in other states, even as the company rakes in huge profits from ratepayers and doles out lucrative pay packages to top executives.  During 2010, American Water granted more than $12.5 million in total pay to only seven top executives, while collecting net profits of $268 million on total revenues of $2.7 billion.

Earlier this year, the UWUA successfully mobilized community opposition to American Water’s attempt to win a 30-year operation and maintenance contract for the water and wastewater system in Rialto, California.  The Rialto City Council rejected the proposal on June 28, after hundreds of residents packed City Hall to voice opposition to the deal.

The UWUA also joined with community allies in 2010 to successfully block American Water’s attempt to purchase the suburban water system in Trenton, New Jersey.  Voters in Trenton rejected the proposed sale in June 2010 by a 4-1 margin.

The UWUA represents working men and women in the utility industry throughout the U.S., including 2,500 employees of American Water in Missouri and ten other states.  UWUA members are committed to promoting the highest quality and safest utility services possible.  We believe utility companies that treat the communities and customers they serve with respect, consideration, and the highest ethical and legal standards will also treat employees fairly.