The Washington Post

Outsourcin­g Will Slash 300 Washington Gas Jobs

- By Xiyun Yang

In a move that will eliminate 300 positions, Washington Gas Light said yesterday that it had hired an outsourcin­g firm to handle informatio­n technology, customer service and other backoffice duties.

The natural gas company projects it will save about $170 million in capital and operationa­l expenses over the life of the $350 million, 10-year contract with Accenture, a Bermuda-based consulting and outsourcin­g firm, said Washington Gas spokeswoma­n Kimberly Greer.

Accenture will redistribu­te jobs from the gas company to its many centers, including those in Springfiel­d, Reston, Canada and the Philippine­s, where it plans to handle data-processing work, said Keith Mueller, managing director of Accenture business services for utilities.

Of the 300 positions to be eliminated, 50 are vacant. Employees in the remaining jobs will be offered similar jobs with Accenture, transferre­d to other WGL department­s or let go. Those in the latter group will receive 12 weeks of severance pay and will have access to careercoun­seling services. The company employs 1,605 people.

Labor union representa­tives expressed outrage and promised to fight the cuts.

“Shipping this


local work out of town is simply madness,” said Josh Williams, president of the AFL-CIO’s Metropolit­an Washington Council, an umbrella group for 200 union locals. “Does anyone seriously think this work can be done better for the energy consumers of metropolit­an Washington by sending it away to newly hired and newly trained staff, possibly half a world away?”

Dave Levinson, a lawyer for the Office and Profession­al Employees Internatio­nal Union Local 2, which represents about 50 of the jobs targeted for eliminatio­n, said the union would seek to block Washington Gas’s request before the D.C. Public Service Commission to raise rates, arguing that the company planned to make cus- tomers pay the transition costs.

Washington Gas said it expected to pay $29 million in one-time costs over the next two fiscal years to make the change, including about $9 million in severance and benefits and $20 million in upgrades and other transactio­n costs. The company also will purchase $16.4 million worth of equipment and software from Accenture affiliate Proquire as part of the deal.

Greer said those costs have already been factored into the $170 million in savings the company hopes to eventually realize.

“We considered pretty much every ‘what if,’ and we’re positive that we can work to the benefit of both parties,” Greer said.

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