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.
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“This was an extremely difficult decision, but it was absolutely necessary to maintain the organization’s financial viability,” CEO Jeffrey Thompson said. “We developed this plan after months of deliberation, careful analysis and assessing both the utility’s immediate and future needs. This reorganization has obviously impacted the lives of these employees and their families. I greatly appreciate the significant efforts that each employee made to serve our customers.”
Thompson told the CAW board in December he and the senior management team would bring them an amended budget plan for 2026 in March, and warned it would likely include significant changes.
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The board is set to consider that amended budget next Friday, March 20.
“Our enabling legislation makes it clear that CAW must take a markedly different course from our predecessor organization,” Thompson said. “Our customers are counting on us to take the steps necessary to reverse financial trends established over many years and to emerge stronger and better equipped to provide the world-class service they deserve.”
Several of the employees fired Friday held a press conference Friday afternoon. “We need to stand our ground,” said Cassandra Patterson, who says she was called into a meeting Friday morning and told she had to retire. “I’m going to stand with these employees whether I’m up here or not,” Patterson says.
Patterson says she was told she has until April 27th to sign her severance papers.
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