As some of you are already aware and have maybe seen news reports, PP&L layed off (or more like fired) dozens of their employees in the past week. We were on pins and needles Wednesday and Thursday wondering if Chris was going to be one of those lineman who would get a letter. Thankfully he did not, but many did. Here is a much more accurate summary of what happened, as the news reports (as usual) do not clearly state the real story. This is just a press release from 659, which is Albany area. I'll post a release from 125 if it comes available. Chris would have been out a job for sure if he would have stayed in the other union.
Press Release: Local Union 659, I.B.E.W. 6-8-2012
Subject: Pacific Power & Light Layoffs
Myself and LU 659 Asst. Business Manager, Lennie Ellis, were invited to meet with Pacific Power & Light Co. management representatives on Tuesday, June 5, 2012 to discuss the layoffs of Local Union 659 bargaining unit members. The company representatives present were the Director of Labor Relations, Jeremy Courval, Labor Relations Representative, Aaron Gratias and the Director for the Transmission & Distribution Department, Rick Bielby.
We were informed that 24 of our members would be layed off on June 8, 2012. The classifications were Journeyman Lineman (18) and Apprentice Qualified (6). All of them had been hired since the effective date of our last Collective Bargaining Agreement, April 26, 2011. (which would have been Chris too). The members last day to report for work will be June 8th. They will be paid until June 25th. Their insurance premiums will be paid thru the end of June, at which time they will no longer have coverage unless they elect to pay the COBRA rates.
Director Bielby explained there will be a total of 54 bargaining unit members that will be laid off on the 8th. Other than the 24 members laid off in LU 659, the rest are members of IBEW LU 125 in Portland, OR and UWUA Local 127 in Coos Bay, OR. . Approximately 30 non-represented employees that worked in the Lloyd Center Tower in Portland, OR received their layoff notices last week. No plans have been made to lay off management employees in the field. Director Bielby explained this layoff was Phase I. Phase II, if required, would entail layoffs in specific Districts with corresponding openings in other Districts where more manpower is required. The Roseburg, Medford and Yreka/Mt. Shasta Districts were hit the hardest with a total of 14 employees. The remainder of the layoffs in LU 659 will occur in the Albany, Crescent City, Grants Pass and Klamath Falls Districts.
Company representatives explained the reasons for the layoffs were economic. They cited declining load (Kilowatt-Hour sales) which has resulted in declining revenues in the last 4 years. They said that new connections are minimal and are forecasted to be flat for the forseeable future. They hope this layoff will decrease their need to ask for rate increases at the various State Public Utility Commissions.
This layoff was not negotiated by the Union. If it had been, we would have suggested cuts more beneficial to the customers than we were presented with. The employees being layed off are mostly young and highly trained Journeyman workers. The majority are Jry. Linemen; the employee’s primarily responsible for restoring customer power during outages and storms. PP&L Managers do not work in the field, nor do most of them have the expertise or training to do so.
If it were actually necessary to cut costs, we believe there are more efficient ways to do it. Additionally, we believe this layoff is a direct result of their owner’s decision, MidAmerican Energy, in Des Moines, IA, to cut the PP&L operating budget from $170 Million in 2011 to $125 million in 2012. The operating budget not only pays for new business projects, but also pays for the system maintenance to insure safe, reliable and efficient service for the existing customers. The other factor is the amount the owner, MidAmerican, takes out of the PacifiCorp profits each year. Our members report that Pacific Power & Light CEO, Pat Reiten, informed them in a company meeting they had forwarded $0.5 Billion to MidAmerican Energy last year and they expected to send more later. In our opinion that is money that could have been used to upgrade and improve the existing transmission and distribution systems in Oregon where the majority of the PP&L customers live.
Respectfully,
Ronald W. Jones
Business Manager/Financial Secretary
Local Union 659
International Brotherhood of Electrical Workers
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