July 8, 2003
Kamloops Daily News



When I opened my BC Hydro bill and read the leaflet inside,
I thought some transformation must have taken place.  The
leaflet said that Accenture was now a B.C. business. 
The last I heard, Accenture was based in Bermuda.

Accenture has been blacklisted by California's state
treasurer for questionable business practices such as
relocating to offshore tax havens.  The Ontario Auditor
General slammed Accenture in 2001 for a deal to take over a
government program that resulted in massive cost over-runs. 
Apparently image problem is nothing that can't be fixed by
opening a B.C. office of Accenture.

The flyer said that "Accenture Business Services of BC is
committed to building a world-class operation in British
Columbia that will contribute to the province's economic
growth and provide employees with expanded career
opportunities." 

Accenture, through BC Hydro, is trying to counter the
growing opposition to the privatization of the
publicly-owned utility.  People are angry that Premier
Campbell has handed one-third of BC Hydro operations over to
Accenture.  It's a sweet deal -- a ten year contract worth
$1.45 billion. 

Accenture will save BC Hydro money, Stephen Bruyneel told
me. He's the  manger of Corporate Communication for BC
Hydro.  He said that Accenture is contractually obliged to
save $250 million over ten years.

"Exactly how would Accenture save that money?" I asked. 
Well, it turns our that we will never know.  Private
businesses are not obliged to divulge such things.  But in
general, "savings will result from economies of scale," says
Bruyneel, "by having a larger customer base."

Accenture Business Services of British Columbia has big
plans and BC Hydro is just the start. The plan is to bring
other North American power companies into the B.C. office. 
BC Hydro will share in those profits, Bruyneel said.

"How much profit will Accenture get from the BC Hydro
contract?" Sorry, that's a secret. 

Jerri New has a problem with all this secrecy.  She's the
head of the Office & Professional Employees International
Union.  Her members were not given much choice -- move to
Accenture or retire.

"If this is such a good deal," Jerri New told me, "why is
the government afraid to show us the details?"  The whole
transfer of a public crown corporation has also been done in
secret.  "It's normal business practice when one company
takes over another that hearings are held.  The shareholders
of BC Hydro -- the people of B.C. -- were not consulted,"
she said.

Jerri New also disputes BC Hydro's claim that they could now
"focus on its core business of generating, transmitting and
distributing electricity."  Some of that core work is now
done by Accenture, such as monitoring water levels in dams. 
"The whole computer system is integrated with BC Hydro,"
said New, "it's a matter of public safety."

The former BC Hydro workers feel betrayed.  They are still
providing Information Technology, computer networking,
customer service, and building supplies but their employer
is now Accenture.

She suspects that profits for Accenture will come by
increasing BC Hydro rates.  Accenture is not in business as
a public service - - last year they had net revenues of
$11.6 billion world-wide.  Also, Accenture will save money
from fewer staff.  Of the 1,600 staff that worked for BC
Hydro, only about 1,450 moved to Accenture.  That alone
results in over one-third of the claimed savings.

BC Hydro employees (some from Kamloops) moved to Accenture
call centers in Vernon, Nanaimo, Prince George, and
Vancouver.  Most call centers are not unionized, so you can
be sure that when the current collective agreement expires,
they will be asked to take a pay cut.  And if they don't, 
call center operations can be moved to where workers will
accept lower wages.

The real question is why Premier Campbell would dismantle a
profitable company that provided high customer service and
the lowest electricity rates in North America?

The answer is ideology.  In the premier's mind, crown
corporations and public utilities are sources of untapped
profits.  Regardless of how efficient they are or how well
they are operated,  they are public services that must be
dismantled for the corporate good.

If money  and jobs flow out of the province, and if we pay
higher electricity rates, Campbell considers it  a small
price to pay for sake his ideology.

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