Executive bonuses banned at six UK water companies over pollution
LONDON: Six UK water companies were banned Friday from paying bonuses to senior executives, which the government said would be inappropriate given their failure to clean up their massive sewage discharges.
The new measures, whose targets include the country's biggest supplier, financially troubled Thames Water, prohibit the companies from paying bonuses 'to water bosses that oversee poor environmental and customer outcomes', the government announced in a statement.
Suffering from underinvestment in a sewer system that dates largely back to the Victorian era, UK water companies, privatised since 1989, have been under fire for several years due to the discharge of significant quantities of sewage into rivers and the sea.
Despite this, 'water companies have awarded over £112 million ($152 million) in bonuses and incentives over the last decade,' the government noted.
These executives 'should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution', said environment minister Steve Reed.
The Labour government, which came to power in July, has promised to reform a sector 'in crisis' and has already legislated to toughen penalties for water company bosses who fail to comply with the law.
Water regulator Ofwat last week imposed a record fine of £123 million on London supplier Thames Water, which serves 16 million customers, for repeated sewage spills.
Some £18.2 million of the fines related to 'unjustified' payouts of dividends.
The firm is seeking a private buyer to avoid a state bailout.
US investment fund KKR pulled out of a potential deal on Tuesday.
Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water were also hit with the bonus ban.
Britain's public spending watchdog warned in April that the water sector as a whole will need to invest £290 billion over the next 25 years to meet environmental and supply challenges.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
6 hours ago
- New Straits Times
Nato chief urges 400pct rise in alliance's air defence
LONDON: Nato head Mark Rutte on Monday urged a "quantum leap" in defence capabilities including a "400-per cent increase" in air and missile defence to shield the alliance against Russia. His comments came as he pushes for Nato members to commit to ramping up defence spending at a key summit of the western military alliance later this month. "We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies," the Nato secretary general said in a speech to the Chatham House think-tank in London. To maintain credible deterrence and defence, Nato needs "a 400-per cent increase in air and missile defence", the former Dutch prime minister added. "The fact is, we need a quantum leap in our collective defence," he said. Rutte is urging Nato members to commit to 3.5 per cent of GDP on direct military spending by 2032, and an additional 1.5 per cent on broader security-related expenditure. The proposal is a compromise deal designed to satisfy US President Donald Trump, who has demanded that allies each spend five per cent of economic output on defence, up from a current commitment of two per cent. Rutte said he "expects" leaders to agree to the proposal at the summit of the 32-country alliance on June 24-25 in The Hague. "It will be a Nato-wide commitment and a defining moment for the alliance," he said in his speech. Russia condemned Rutte's comments before he took to the stage, denouncing Nato as "an instrument of aggression". Nato "is demonstrating itself as an instrument of aggression and confrontation", Kremlin spokesman Dmitry Peskov told reporters in Moscow. Rutte's speech came after he met UK Prime Minister Keir Starmer on Monday, their second Downing Street talks since the Labour leader came into power in July 2024. Starmer's government this year pledged to increase defence spending to 2.5 per cent of GDP by 2027, but has not yet set a firm timeline for further hikes. On Monday, Canadian Prime Minister Mark Carney announced Canada would hit two per cent this year. US Secretary of Defence Pete Hegseth said last week the allies were close to an agreement on the split five-per cent target. "That combination constitutes a real commitment, and we think every country can step up," he said on Thursday. Nato members have been scrambling to bolster their defence capabilities since Russia launched its invasion of Ukraine in February 2022. Trump's return to the White House in January, and question marks over his commitment to European security, has added urgency. "Danger will not disappear even when the war in Ukraine ends," Rutte said at Chatham House. "We must have more forces and capabilities to implement our defence plans in full." He added that Russia currently produces the same amount of ammunition in three months as "the whole of Nato produces in a year". "Our militaries also need thousands more armoured vehicles and tanks, millions more artillery shells," Rutte added. Britain announced plans last week to build up to 12 nuclear-powered attack submarines and six munitions factories to rearm the country in response to what it said were threats from Russia. Rutte also warned that China is "modernizing and expanding its military at breakneck speed". "Nato has to become a stronger, fairer and more lethal alliance," he added. And he warned that if countries cannot commit to 5.0 per cent for defence spending "you could still have the National Health Service, or in other countries, their health systems, the pension system, etc, but you better learn to speak Russian. I mean, that's the consequence". - AFP
Borneo Post
3 days ago
- Borneo Post
Petronas workforce 'right-sizing' prompts calls for fairness, support measures
File photo for illustration purposes KUCHING (June 7): Deputy Minister in the Sarawak Premier's Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala has urged Petroliam Nasional Berhad (Petronas) to consider all alternatives before proceeding with its plan to lay off 5,000 employees. Speaking to The Borneo Post today, the Mulu assemblyman acknowledged that while Petronas may have its own justifications, retrenchment should be the last resort for any commercial organisation. 'There are other options Petronas can consider, such as offering a voluntary separation scheme (VSS), redeploying staff between departments — for example, from upstream to downstream — implementing temporary salary cuts, or initiating retraining programmes,' he said. 'Only employees who are truly redundant or surplus to requirements should be laid off. Any staff member who feels they have been unfairly dismissed under the guise of redundancy can challenge their termination in the Industrial Court.' When asked whether the layoffs were related to Sarawak Petroleum Berhad (Petros) being recognised as the state's gas aggregator, Gerawat declined to comment. However, the Sarawak Oil and Gas Workers Association (SOGWA) said they do not believe the move is a direct result of Petros' appointment, though acknowledged it may trigger a realignment within the industry. 'This change presents an opportunity for Sarawak to assert greater control over its oil and gas sector,' said SOGWA deputy chairman Keroana Johny Weiss. 'But if Sarawakians are among those affected by the layoffs, it will significantly impact local families and communities. 'Many of these workers are highly skilled and experienced professionals who have contributed significantly to the national oil and gas industry,' she stressed. 'Their displacement not only affects livelihoods but also risks a loss of valuable talent from Sarawak.' 'We strongly urge the Sarawak government to step in and provide structured support such as job placement programmes, upskilling initiatives, and inclusion in ongoing and future state led projects,' she said. 'This is vital to safeguard Sarawak's interests, retain our professional resources, and ensure Sarawakians continue to play a key role in managing and developing our state's natural wealth,' she added. Labour Law Reform Coalition (LLRC) deputy chairman Andrew Lo echoed similar sentiments. While acknowledging that layoffs can be inevitable in the corporate world, he stressed that they must be executed with fairness and transparency. 'What must done is that the layoff must be a last resort, be made in good faith, with full consultation with employees and their unions, adequate compensation and feasible options and assistance to those affected- transition and training for new jobs.' Voluntary and mutual agreeable exit schemes should be implemented instead of forced retrenchment, he added. Such schemes should be offered to everyone to minimise coercion and undue pressure on employees, Lo added. According to Bernama report on Thursday, Petronas President and Chief Executive Officer Tengku Tan Sri Muhammad Taufik Tengku Aziz has said that Petronas would cut about 10 per cent of its workforce as part of the national oil and gas company's 'right-sizing' and restructuring process. Muhammad Taufik also denied that the state-owned company would exit its business in Canada. Petronas had previously stated that it needs to 'right-size' its workforce to ensure the company's sustainability in the decades to come. Petronas has nearly 50,000 employees, according to its website. gerawat gala Keroana Johny Weiss Petronas right size workforce
Free Malaysia Today
4 days ago
- Free Malaysia Today
UK's Thames Water fined £122mil over sewage and dividend breaches
Thames Water's credit rating is currently below investment grade. (EPA Images pic) LONDON : Britain's Thames Water, on the brink of financial collapse, will have to pay a record £122.7 million fine for breaching its legal obligations over sewage treatment and dividend payments, regulator Ofwat said today. The watchdog, which had previously issued a £104.5 million penalty, added an additional £18.2 million to the fine after the company paid out dividends despite delivering an operational performance that caused 'an unacceptable impact on the environment and customers'. It also issued an enforcement order which would require the company to take steps to rectify identified breaches relating to its wastewater operations. Thames, Britain's biggest water supplier with 16 million customers, has been at the centre of a backlash over the privatised water sector, accused of pumping sewage into rivers and seas while paying out dividends and allowing its debt pile to balloon to 18 billion pounds. 'This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,' Ofwat boss David Black said in the statement. The company secured a £3 billion loan in February to stave off financial collapse. Today, Ofwat said the company was seeking new buyers to fund its turnaround. Thames, whose credit rating is currently below investment grade, is now in cash lock-up and no further dividend payments can be paid without Ofwat's approval, the watchdog, which recently received new powers to better scrutinise the industry, added. Earlier this month the company halted a bonus scheme for its executives after ministers objected to the payouts. In a separate statement, Thames Water said its lenders continued to support its liquidity position and that its equity raise process was continuing. 'We take our responsibility towards the environment very seriously … The dividends were declared following a consideration of the company's legal and regulatory obligations,' it said.
