BIRMINGHAM, Ala. (WBRC) – Central Alabama Water (CAW), Alabama’s largest water utility, laid off more than 130 employees Friday, March 13, as part of a major reduction in force it says was necessary to avoid a 10% rate increase.
The utility fired 135 employees, or 23% of CAW’s, and eliminated 76 vacant positions for a total reduction of 211 funded positions. All divisions were impacted by the layoffs. After today’s actions, CAW will employ 449 people. The utility in a statement said it believes the move will save $20.1 million per year in labor-related expenses.
The major personnel move comes less than 48 hours after the utility’s latest financial filing revealed it’s losing more than 53% of the water it treats to leaks or unbilled customers, while customers using 6 CCF of water a month (the “average” customer in the utility’s modeling) now pay 354% more than they did in 2001, or 4 times the national rate of inflation. The majority of that timespan the utility was known as the Birmingham Water Works Board…