GTCU Press Release On The Repurchase Of Majority Shares Of Grenlec By The Government Of Grenada

PR – The Grenada Trades Union Council notes with some alarm, the announcement by both
the Government of Grenada (GOG) and WRB of the finalization of the repurchase of
controlling shares in GRENLEC owned by WRB. We note that the announcement by the
Government of Grenada did indicate the negotiations and arrangements were confidential
but now the matter has been brought to the public domain and given that the entity is an
essential service, now publicly owned, there is an obligation by Government to be
transparent and divulge all relevant information with regard to the repurchase, transition,
future management and corporate status of the entity to the workers, Unions and in fact
the general public.

As the Umbrella organization representing all workers, we are obligated to register
questions and interest relating to the sale, ownership and divestment of National Assets a
process which in the past have had flaws.

The announcement has brought about a host of questions which our members and the
general public are entitled to have answered, some of which are listed following:-

1. Will the status of the entity be Statutory, State Owned Corporation or otherwise?

2. Will all controlling shares now owned by GOG be divested and if not what
percentage will be retained?

3. If controlling shares will be divested, will local Companies, the Diaspora and
Nationals have preference to the purchase such shares?

4. We request having sight of Share Purchase and Sales Agreements, between the
Government and WRB and any Agreements, Articles of Association or Protocols
between the Government and the new owners or Management Firm that will run
the entity.

5. We are insistent that in the event the Majority Shares are sold or divested, any
Sales Agreement or Share Purchase Agreement must contain a Guarantee of
Workers Benefits in particular but not limited to Profit Sharing as was done in the
case of the GBC Sales Agreement.

6. What was source of funding to purchase WRB shares, the price paid and is the
amount now part of the National Debt?

7. With the announcement that the Government of Grenada paid at least three (3)
times the market value of the shares in accordance with the formula as determined by the Tribunal, we seek to find out if the shares will be divested at market value or par with that paid for them.

8. Will the Management Firm being identified be afforded an Executive
Management Contract or will the Government of Grenada retain the decision
making role?

9. Will the same Management Firm being sought be responsible for advising on or
divesting the Government shares?

10. Is there a transition period for the Management arrangement and if so will it be
indefinite or limited to what time?

The GTUC in this regard will be seeking an URGENT audience with the Prime Minister
Hon. Keith Mitchell