Northern Indiana Public Service Company presented its fourth last, best and final offer to United Steelworkers Locals 12775 and 13796, which union leadership said doesn’t have member support and will likely trigger a lockout Thursday afternoon.
The company gave both unions — Local 12775 located in Porter and Local 13796 located in Wanatah — the offer at 4:22 a.m. Wednesday after 21 hours of negotiations, according to a statement from the unions.
“The union was unanimous in their decision that the company’s offer would not work for their union members. The union felt they made substantial movement in the company’s direction, trying to reach a fair agreement and was very disappointed in the company’s final offer,” according to the unions’ statement.
NIPSCO said in a statement that the company extended the unions’ current contract, which expired March 31, through 4 p.m. Thursday as negotiations continued. If an agreement isn’t reached by then, NIPSCO said it would initiate a lockout that “will continue until the union accepts our final offer and we have an agreement as part of the collective bargaining process.”
“We will continue negotiating in good faith toward an outcome that demonstrates our commitment to our customers, communities and employees and best positions us to continue delivering safe, reliable and affordable energy,” NIPSCO said in a statement.
The company’s proposal addresses safety, faster emergency response, long-term service reliability and customer affordability balanced with cost savings, customer responsiveness and operational efficiencies “while providing NIPSCO union workers’ wage increase, additional jobs, safety enhancements … and enhanced benefits including more robust holiday flexibility and paid paternal leave,” according to the NIPSCO statement.
NIPSCO also provided a one-time ratification bonus “recognizing the importance of these changes to the future of NIPSCO,” according to the company’s statement.
The unions are focused on addressing safety and training concerns “that make our extremely knowledgeable workforce stronger and protect the communities that we live and work in.”
“While the offer includes items our members appreciate, this agreement is about more than wages, and other economic matters,” according to the unions’ statement. “Our dedicated members are always on the job in times of need and strive to put in the hours to ensure service, emergency response and minimize outages.”
The unions’ goal during negotiations remains to bargain for a fair contract “that provides dignity for workers and protects and expands good jobs that provide value, reliability and safety in our communities across northern Indiana.”
The membership of USW Local 12775 voted over the weekend with more than 98% approval to give the committee authority to call a strike amid contract negotiations, according to a letter from the union.
For its part, Local 12775 doesn’t want to come to a strike, said vice president Vernon Beck on Monday afternoon. Having gone through a strike in the 1980s, that’s the last thing anyone wants, he said.
Particularly concerning to the union is NIPSCO’s insistence on having “flexibility” to hire more outside contractors, Beck said. Currently, there are more contractors working on several projects than there are NIPSCO employees, he said.
While NIPSCO hasn’t disclosed to the union how much it pays contractors, the union has calculated roughly that contracts receive between $100 to $125 per day for per diem and between $19 to $70 per hour, depending on the trucks they use and an hourly wage, Beck said.
“There’s no way that’s cheaper than having us do the work,” Beck said. “I’ve been with NIPSCO for 47 years, and every five to seven years, we get a new group of executives who want to change everything. They made record profits, then turn around and tell us they need us to make concessions.”
Certain storms or outages don’t meet the current contract rules for premium overtime pay, which translates to fewer incentives for crews to work, NIPSCO said. When lineworkers don’t respond, the company brings in contractors to complete the work.
“Hoosiers feel the impact of these delays and operational challenges. The goal of negotiations is not to reduce pay. It’s to update work rules so we can get the job done faster and safer when customers need power restored,” according to the company.
The current contract has been updated over decades “and some of its rules no longer reflect how a modern utility must operate to serve customers safely, reliably and responsibly,” NIPSCO said.
The utility company has been focused on affordability, better service, reliability and safety amid contract negotiations.
“We recognize that many customers are feeling real pressure from their energy bills. Modernizing NIPSCO means improving how we operate with greater operational flexibility, while responsibly managing the costs we control so customers can count on safe, reliable service,” according to the company’s website.
The company stated that it remains “committed to recognizing that contribution and rewarding their work fairly.
“We approach negotiations with respect and a commitment to reaching a fair agreement. Our focus is on maintaining the right balance, supporting our people with continuing to deliver dependable, affordable service for customers,” NIPSCO said.
Freelance reporter Michelle L. Quinn contributed.
akukulka@post-trib.com
