In a surge of activism, members of utility locals are taking on some of the sector’s most profitable companies, rejecting their mandates for concessions in benefits, wages and working conditions as contracts expire.

Some utilities are counting on diminished public support for the men and women who keep the lights and appliances on in cities and small towns across North America.

"When people are hurting, it’s sometimes harder to get them to identify with other folks trying to defend what they have," says International Representative Don Hartley, IBEW Utility Department.

Utility locals are patiently spreading the message that to give in to the greed of still profitable companies will only add to the hurt of surrounding communities.

The utility industry historically has not been hit as hard as other sectors during recessions. Domestic demand for electricity has always kept utilities more stable than other economic sectors. In the 1981-1983 recession, for example, manufacturing jobs were reduced by 13 percent. Construction was reduced by 17 percent. But utilities lost only 2.5 percent.

In the current downturn, utilities have actually increased by 13,000 additional workers.

The nation's industrial load for electricity is down more than 12 percent in 2009, compared to 2007. But revenues are down only 1.2 percent. Overall revenues are up 10 percent in 2009, compared to 2007.

Here's how local unions are dealing with today’s reality.

Central Maine Power (Energy East-Iberdrola)

Members of Manchester, Maine, Local 1837 have voted to authorize a strike at Central Maine Power, a subsidiary of Energy East, which is owned by Spain-based Iberdrola, the world’s fourth largest utility. Negotiations are continuing beyond a May 15 contract expiration.

Seventy percent of the local’s membership rejected the company’s first contract proposal, which called for steep cuts in health care insurance for active and retired workers and the elimination of a defined benefit pension plan for new hires.

"If there’s any way to break up a union," says 12-year CMP lineman Sam Grodin, "it’s having two classes of citizens in the same local union."

CMP had a healthy 10-percent profit margin last year, sending $55 million to Spain to fuel Iberdrola’s expansion across the globe.

A local union press release challenges Iberdrola’s bargaining position: "CMP’s proposed concessions may very well mean that some of their workers will be forced to seek some form of public assistance for healthcare, thereby shifting this expense from CMP to the taxpayers. This could pose a long-term threat to Maine’s economy."

Rochester Gas and Electric, also an Energy East subsidiary, has been in negotiations with Rochester, N.Y., Local 36 on a new contract since May 31, 2008. The NLRB has already issued a complaint charging the company with an unfair labor practice for instituting unilateral changes to its health insurance plan, covering 380 union members.

International President Edwin D. Hill attempted to reach an understanding with the company’s CEO to bring in a special independent mediator to reach a comprehensive contract settlement. His request was rejected.

Local members have overwhelmingly authorized a strike.

FirstEnergy

More than 500 Johnstown, Pa., Local 459 members went on strike against Penelec, a Pennsylvania subsidiary of FirstEnergy on May 21.

"Our members will not submit to the philosophy of FirstEnergy, a corporation that made $1.3 billion in 2008, telling us that they can’t afford a decent wage increase because they only expect to make $1 billion in 2009,” said Don Hoak, Local 459 business manager.

Along with meager pay increases, FirstEnergy wants to impose a work schedule that would “take us back to 1910,” says Hoak. Contract proposals would give managers total flexibility in setting hours of work.

Support is strong in the community served by Penelec. "Everybody is tired of the corporate greed and they want to stand up against it. Many just don’t have the avenue that we do," says Hoak.

Florida Power and Light

The contract between 11 locals of System Council U-4 and FPL expired last October. "FPL isn’t losing money," says the council’s Business Manager Gary Aleknavich. "They just aren’t making as much as they want."

The parties have agreed to a one-year contract extension. FPL is seeking cuts in medical insurance benefits and limiting wage increases to 2 percent per year. The utility also wants to modify the bargaining unit position of nuclear watch engineer, reducing the pay of future engineers by $5 per hour.

On May 19, approximately 25 members of Ft. Lauderdale, Fla., Local 759 picketed an FPL facility protesting the company’s wage offer. Linemen are already paid 8 percent below the national average for similar employees, while FPL has paid bonuses to executives.

Members of the council’s 11 locals are voting on a new contract proposal, with results due after our press date.

Alliant Energy

Alliant Energy has shut down its Rock River Power Plant in Wisconsin as part of a cost-cutting plan. Thirty-one members of Madison, Wis., Local 965 will lose their jobs at the 50-year-old former coal-fired generators that were converted to natural gas in the past decade.

Local 965 Business Manager Tony Bartels says that the average age of 1,300 members at Alliant is 50 years old. Alliant will be laying off skilled workers who will be needed over the next few years.

"It’s crazy," says Bartels. "They will be letting third-year apprentices go today and hiring new apprentices next year."

While Alliant’s demand has dropped due to the shutdown of a General Motors plant and supporting businesses, the company still declared first quarter income of $72.6 million.

Moving Forward Together

International President Edwin D. Hill applauds the efforts of local unions in the utility branch to stand up for reasonableness and far-sighted solutions to problems.

"The IBEW didn’t formulate our Code of Excellence for the utility industry to have our members marginalized and undermined by short-sighted management policies," says Hill. "With a transmission grid to build and renewable energies to explore, the IBEW and the utility industry need to move forward together."