In a precedent-setting decision, the West Virginia Public Service Commission issued an order on October 13 blocking American Water’s attempt to drastically slash its workforce in the state. The PSC decision was based on a complaint filed by UWUA and Local 537, charging that the proposed cutbacks would severely impair essential services for West Virginia consumers.

“The commission’s decision is a huge victory for consumers and workers against irresponsible conduct by American Water,” stated Kevin Booth, president of UWUA Local 537. “We are pleased the PSC agreed with our position that the company’s proposed cutbacks posed an unacceptable risk to the delivery of critical public services.”

The decision marks a rare instance in which a state public service commission has blocked a regulated utility from imposing layoffs and ordered minimum staffing levels.

UWUA and Local 537 filed the complaint after the company announced plans last May to lay off more than 10% of its workforce statewide. The UWUA presented testimony establishing that the layoffs would have jeopardized critical services for West Virginia consumers.

The UWUA also emphasized sworn testimony by West Virginia American Water President Wayne Morgan in the company’s most recent rate case that it needed its entire existing workforce “to maintain adequate service to our customers.” Although the commission’s April 2011 decision in the rate case granted a 4.4% increase and fully funded all 316 positions requested by the company, the PSC turned down the company’s request for a 13% rate hike.

The company announced plans to eliminate more than 30 of those 316 positions two weeks after American Water’s CEO publicly complained the West Virginia rate increase wasn’t big enough. At the corporation’s annual meeting in May, CEO Jeffry Sterba threatened to impose “operating cost reductions” in the state as a result of the rate case decision.

In May, the West Virginia PSC upheld the UWUA’s complaint and issued an order enjoining American Water from implementing its cutback plans pending an investigation by the commission into the effect the layoffs could have on consumer services. The October 13 decision represented the final order in the case after the PSC completed its investigation.

In the most recent decision, the PSC ordered the company to maintain minimum staffing levels in the state, and specifically prohibited management from terminating 10 positions it had targeted for elimination. Those 10 positions perform essential services such as valve maintenance, meter reading, and other critical functions, and included every UWUA-represented position the company had previously slated for elimination.

The commission’s order effectively blocked the company from laying off any of the union members management had targeted for layoffs, including UWUA members as well as members of the Laborers’ International Union.

The UWUA has announced plans to immediately take action if any of the future monitoring reports show the cutbacks have impaired public services. “It’s unfortunate that it took an order from the state Public Service Commission to ensure that American Water lives up to its responsibility to deliver essential public services,” stated UWUA National President Michael Langford.

“The UWUA will continue monitoring the company’s performance to make certain it meets its obligations to working families in West Virginia.”

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