Resistance mounts against Washington Gas cuts

In an article written by Judson Berger for Maryland Gazette Newspapers highlights the growing resistance to all of Washington Gas's recent outsourcing activities.

A decision by utility provider Washington Gas to outsource 300 jobs has triggered criticism from activists and union members who say the move will not only eliminate local jobs but also endanger customers, whose gas leak calls could be taken by operators outside the U.S.

Washington Gas representatives say their $350 million contract with Bermuda-based Accenture, signed June 19, is binding. But the Office and Professional Employees International Union Local 2, which represents the workers, is attempting to stall the deal by petitioning against any rate increases. The utility provider has applied for rate hikes to defray up-front costs of the arrangement.

‘‘It’s about safety,” said union president Dan Dyer. ‘‘I’m hoping it’s not too late ... We don’t believe that the dispatching can possibly be as effective, or well-done, 1,000 miles away.”

The bulk of the jobs at stake under the agreement are customer service positions, which Accenture could send not only to call centers in Virginia but also to Canada and the Philippines.

Local lawmakers haven’t decided how they’ll respond to the move, but members of the Prince George’s House delegation grilled Washington Gas on the decision during a briefing Tuesday in Laurel.

‘‘Outsourcing is ... a dirty word in Annapolis,” said delegation chairwoman Del. Barbara Frush (D-Dist. 21) of Beltsville. ‘‘I know others will not also look on this kindly.”

Del. Anne Healey (D-Dist. 22) of Hyattsville said she was concerned that emergency calls could be picked up by service representatives who don’t know or understand the community.

But Washington Gas division head Luanne Gutermuth said Accenture’s service staff are trained to handle emergency calls, and that they wouldn’t be handling them until the company is confident in the process linking the call centers and the local emergency dispatchers.

Del. Tawanna Gaines (D-Dist. 22) of Berwyn Heights and Del. Veronica Turner (D-Dist. 26) of Camp Springs also attended the hearing. Their questions were especially pointed, given the recent problems Washington Gas has had with natural gas leaks in Prince George’s County.

The company has been working to repair the problem in about a 100-square-mile area of Prince George’s ever since a leak caused a District Heights home to explode in March 2005. The company traced the problem to what it said were deteriorating rubber seals within the pipelines’ couplings.

As of June, the company had replaced 23,053 of the 30,000 problem couplings and fixed 162 of the 175 miles of gas mains it has slated for restoration. But residents are still asked to be vigilant about calling in potential leaks.

‘‘If I went home and smelled gas in my house, I’d feel safer calling someone in my area, rather than calling someone in Canada or Manila,” said union staff representative Sarah Stough.

Washington Gas has rate increases pending before public service commissions in Washington, Virginia and Maryland, but the union has been campaigning against them in an attempt to make it more difficult financially to execute the outsourcing arrangement.

The company estimates the deal will cost $29 million in fiscal 2007 and 2008.

Dyer said the union has also filed an unfair labor practice charge against Washington Gas before the National Labor Relations Board, claiming the company would not negotiate with the union regarding the decision to outsource.

Washington Gas serves more than 166,000 customers in Prince George’s County, and about 215,000 customers in Montgomery County.

Local activist Dottie McNeill, past president of the Chillum Ray Citizens Association, said she suspected Washington Gas had turned to outsourcing because it was unable to muscle through a proposal to build a liquefied natural gas facility in Chillum.

‘‘It’s just sad,” she said.

The company had wanted to build the 12-million-gallon storage tank so it could save money by buying gas in bulk. But nearby residents complained that the potentially volatile facility was too close to homes, and the County Council effectively killed the proposal in May 2006 when it approved a zoning measure prohibiting fuel tanks in that area. The decision was again upheld before the council in October.

The matter is in litigation in Prince George’s Circuit Court.

Washington Gas spokeswoman Lorre Bowman said in an e-mail to The Gazette that both the LNG facility and the outsourcing were ‘‘carefully planned initiatives that help us provide safe and reliable service to customers and keep costs under control.”

As for concerns about the level of service customers can expect from overseas call centers, Bowman said, ‘‘We anticipate enhanced customer service. We own, operate and maintain a safe and reliable pipeline system, will continue to do so and continue to respond to natural gas emergencies 24⁄7.”

Washington Gas plans to pay $9 million in severance and benefits costs during fiscal 2007 and 2008. The layoffs are expected to begin in the fall, and continue through next summer. But Bowman said those employees will have an opportunity to apply for other jobs within Washington Gas or Accenture. Fifty of the 300 positions to be cut are vacant, according to the company.

The contract with Accenture is expected to save Washington Gas $170 million over the 10-year contract.

But union representatives have raised serious concerns about Accenture as well.

The Texas Health and Human Services Commission in March, for instance, canceled its $899 million contract with Accenture to help manage health and social benefits programs for low-income residents. The decision was made following complaints that Accenture’s workers were losing applications and providing poor service.

A representative from Accenture could not be reached for comment.

Healey, who had opposed the LNG facility, said the outsourcing contract was ‘‘just another example of [globalization] coming home to roost.”

‘‘If they can reconsider, I hope that they will,” she said.

Alexander Rodriguez, a Democratic Central Committee member and president of Communities Aligned for Progress, said the Washington Gas contract only compounds the trouble Prince George’s County has in attracting and retaining jobs.

‘‘It’s a bad deal. What we need to do as a community ... is bargain, strike a deal.”