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2,600 FirstEnergy employees ratify union contract extensions
By Betty Lin-Fisher
Beacon Journal business writer
Published on Monday, Jun 29, 2009
Seven unions representing 2,600 FirstEnergy Corp. (NYSE: FE) employees in Ohio and Pennsylvania have agreed to contract extensions between one and three years.
The unions are all represented by the Utility Workers Union of America (UWUA) and are not affiliated with the International Brotherhood of Electrical Workers (IBEW) unions, including IBEW Local 459, which has been on strike since May 21.
Two other IBEW unions in Pennsylvania, Locals 272 and 777, are without contracts and in negotiations with the Akron-based electric utility.
The contract extensions ratified by the seven unions include UWUA Local 126, which represents 315 line and substation Ohio Edison workers in Akron. The other unions represent employees at Cleveland Illuminating Co., Youngstown Ohio Edison, Penn Power, Sammis Plant, PenElec and some power-plant workers in Ohio.
The extensions are for one to three years in length and include wage and health-care changes along with the company's Voluntary Enhanced Retirement Option, a buyout offer for employees 58 years and older with at least 10 years of service. The extent of the contract changes was dependent on the length of the extension. The unions were in existing contracts that were to end later this year to 2011, said FirstEnergy spokeswoman Ellen Raines.
The extensions included wage reductions or delay of wage increases, and parts of the contract depended on what options the union chose, Raines said.
The buyout offer is similar to one extended to non-union employees earlier this month, when the company also cut pay for salaried workers by 5 percent through the end of the year.
Non-unionized employees have until July 10 with a five-day waiting period to change their minds in applying for the buyouts, which would take place on Aug. 1.
Unionized employees have until July 23 and July 24 with the same waiting period for the buyouts, which would take place on Sept. 1.
Raines said there are no target numbers, and the company would not say how many employees take the buyouts in the interim.
In a statement, FirstEnergy President and Chief Executive Officer Anthony Alexander said:
‘‘I appreciate the commitment that our union leaders and represented employees have made during these tough economic times. When combined with the changes already made by our salaried employees, these contract extensions will help ensure that we emerge a stronger company, better positioned for growth when the economy begins to rebound.’’
Don Hoak, business manager for striking IBEW Local 459, which represents 517 workers with the Pennsylvania Electric Co. (PenElec), said there is a lot of risk involved for the union members in the contract extensions accepted by the UWUA unions.
Hoak's union and the company on Thursday agreed to bring in a federal mediator for negotiations, which have not been set.
‘‘The company continues to insist on domination of our work lives. With 15 or more unions on their properties, all enjoying 3 percent wage increases this year, they've offered Local 459 1 percent while at the same time making record profits last year,’’ Hoak said.
The union reduced its offer to return to work and the company rejected the offer, he said.
Hoak said the company has also offered his union the terms of the contract extensions, but the union leadership is not interested in that idea.
‘‘I'm trying to get a contract first, then look at the offer,’’ he said.
Raines said, ‘‘We're not asking PenElec employees to do anything that is different from what our other employees do.
‘‘We need a system that ensures our work force is available when our customers need them.
The contract extensions demonstrate that many in our union work force are willing to work with the company to ensure that we get through a difficult economic time and emerge a stronger company.’’
Overall, FirstEnergy has 6,700 employees represented by 17 local unions.
In other FirstEnergy news, the company reported a ‘‘catastrophic failure explosion’’ at its Davis-Besse plant near Toledo on Thursday to the U.S. Nuclear Regulatory Commission.
FirstEnergy spokesman Todd Schneider said the company is investigating why an equipment failure in the switchyard outside the nuclear plant defaulted early Thursday morn\ ing. The failure knocked out one of two circuits, which powers the plant.
The plant remains operational, the failure was ‘‘well away from the reactor’’ and repairs were expected to be completed on Friday, Schneider said. If the repairs cannot be made within 72 hours, the plant would have to shut down.
No one was injured during what Schneider called the ‘‘flash,’’ and a local fire department responded, but ‘‘there was nothing for them to do.’’
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.
Seven unions representing 2,600 FirstEnergy Corp. (NYSE: FE) employees in Ohio and Pennsylvania have agreed to contract extensions between one and three years.
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