The Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today provided an update regarding compensation for non-bargaining employees at Nalcor Energy and its subsidiaries.

In letters dated May 31, 2021, the Provincial Government has directed the Nalcor and Newfoundland and Labrador Hydro Board of Directors to:

• Eliminate all performance-based pay policies and incentive programs for non-bargaining employees, starting in 2021; and,
• Not take any actions with respect to increases in compensation or remuneration for non-bargaining employees, until further advised by the Provincial Government.

Nalcor has also been directed to find savings to reduce the operating budget of Nalcor and its subsidiaries equivalent to the amount of the performance-based payments owing for the 2020 calendar year for non-bargaining employees.

The Provincial Government recently passed amendments to the Energy Corporation Act and the Hydro Corporation Act, 2007. The amendments provide broad authority for the Lieutenant-Governor in Council to issue a unanimous shareholder agreement to provide direction to the board of directors of Nalcor Energy and Newfoundland and Labrador Hydro to alter the terms and service of employment, including remuneration and bonuses. Amendments passed with the unanimous consent of the House of Assembly.

Nalcor’s 12 subsidiaries include: Hydro; CFLCo; Twin Falls Power Corporation; Nalcor Energy Oil and Gas Inc.; Nalcor Energy Marketing Corporation; Muskrat Falls Corporation; Labrador Transmission Corporation; Labrador-Island Link Operating Corporation; Lower Churchill Management Corporation; Labrador-Island Link General Partner Corporation; Labrador-Island Link Holding Corporation; and the Labrador-Island Link Partnership.

Quote
“Our government committed to making responsible decisions that are in the best interest of the province, particularly given the fiscal situation we face. This action follows the passing of legislation in the House of Assembly to end bonuses for non-bargaining employees at Nalcor. It is also consistent with recommendations of the Public Utilities Board and Muskrat Falls Implementation reports. We continue to examine the future role of Nalcor and the appropriate structure after the Muskrat Falls project is commissioned and will have more to say in the coming weeks.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology

– 30 –

Learn More

Follow us on Twitter @IET_GovNL

Like us on Facebook

Media contact
Eric Humber
Industry, Energy and Technology
709-729-5777, 725-9655
erichumber@gov.nl.ca