G-MW seeks to cut costs

G-MW offers redundancies to reduce costs

Water
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Strong interest in early retirement, at Goulburn-Murray Water.

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TRANSFORMATION PLAN: Goulburn-Murray Water managing director, Charmaine Quick.

TRANSFORMATION PLAN: Goulburn-Murray Water managing director, Charmaine Quick.

Goulburn-Murray Water is seeking to reduce its workforce, and costs, through an early retirement program.

The program was part of the organisation's Transformation Working Plan, according to G-MW managing director, Charmaine Quick.

"This was a way to reduce staffing numbers, perhaps more importantly staffing costs, while paving the way for valuable opportunities for up-and-comers in our business," Ms Quick said.

"We are already saving $4.3 million in labour costs when comparing the most recent six month period with the same time period in 2017-18.

"This is mostly due to natural attrition."

She said 80 employees had expressed interest in early retirement, which was also intended to open the way for employees wanting to further their careers, at G-MW.

Ms Quick said it would open the door for those who wanted to take on "new and exciting roles.

"Career paths will open up and training will be provided, where necessary," Ms Quick said.

The new G-MW structure focused on realigning resources, which was critical to achieving reduced costs.

That began last year when G-MW appointed its executive leadership team.

"The team comprises eight general managers - five are new to G-MW and all are water industry professionals with management and leadership skills in engineering, customer engagement, business and finance, human resources and strategic planning," Ms Quick said.

"From here we appointed a senior leadership team and the functions under each of our divisions."

Ms Quick said it was expected savings would increase, once the new pricing plan was implemented, from July 2020-24.

"This structure enables us to realise the significant savings we have committed to in our pricing submission while maintaining service standards," Ms Quick said.

"These achievements have resulted in a landmark drop in our revenue requirement over the next four years - savings that will be passed on to our customers as price reductions on average reaching 10 per cent as proposed in our 2020-24 pricing submission."

She said there were no plans to close offices, across any of G-MW's six districts.

"As outlined in our Transformation Working Plan, however, and in line with the Strategic Advisory Panel recommendations about our future business model, this is something we must continue to review," Ms Quick said.

"This is consistent with our commitment to lean and efficient operations."

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