Article published May 7, 2009
Unions approve NIPSCO accord
USW locals approve 5-year contracts.
By JIM MEENAN Tribune Staff Writer
United Steel Workers Local 12775 and Local 13796 won't lack for stability over the next five years.

The two locals ratified five-year agreements Tuesday with the Northern Indiana Public Service Co.

The contract averages a 3 percent raise per year over the five years, the last raise being 3.5 percent on Jan. 1, 2014.

"We asked for a modest wage increase," said Jim Blythe, president of USW Local 12775 in a phone interview Wednesday. "We were sensitive to the fact that the economy is in a very difficult situation."

The contract's duration will provide stability."Both sides were happy with that," Blythe said of the pact for the union. Blythe represents Local 12775, which has about 1,450 linemen, meter readers and gas service and repair personnel in northern Indiana. "My concern was with the deterioration of the economy. The only thing I see is the slowdown is slowing down. We were relieved we could get it done."

The contract includes a $1,200 signing bonus for the members. The existing contract expires May 31.

Negotiations started in January, noted Karen Bryan, president of United Steel Workers, 13796, which represents 450 office personnel and technical workers in northern Indiana, and like Local 12775 soundly approved the contract. Negotiations broke off and then reconvened in February with a tentative agreement reached on April 6.

"The biggest change in the contract is the PPO (Preferred Provider Organization) health plan," Bryan said. "Our contribution towards our premium will increase until we get it up to 25 percent."

Currently the union members pay 15 percent with the company paying 85 percent, Bryan said."But the premiums are lower in the PPO plan than in the current indemnity plan, which is more of a traditional plan," she said. The PPO provides incentives to work with doctors under contract with the health organization that union workers will be a part of.

For the most part, members wanted a long-term deal, Bryan said. "It provides them with more stability, but we did get a mixed reaction to that," she said.

"There is job security for anyone with over five years of service and that provides stability for our members."

She was also pleased with getting negotiations done early.

"It's a bit of a change for us," she said. "Typically we bargain to the last minute."All in all, Blythe believes the contract achieved union goals.

"Our main concern was job security for our employees and sustaining adequate medical benefits and pension benefits," Blythe said. "We believe we achieved all three of those goals."

The contract, according to the union's release also, includes expanded entry level use -- for new and existing employees -- of the Ivy Tech Power Plant, Electric Line and Gas Technology certificates with the intent to help guide employees into areas of the company that will be affected by large numbers of skilled employees who will be retiring in the next few years.

In addition, according to the union's release, in an effort to drastically improve customer satisfaction, USW 12775 agreed to a mandatory response provision for major storms that impact and damage NIPSCO's electric transmission and distribution systems. Approximately 200 linemen will be committed to making repairs and getting electric service restored to all NIPSCO's affected customers.

"We are very pleased with the outcome of the new contract, and we are confident that it represents a fair and competitive solution for the company and its union employees," said Eileen O'Neill Odum, chief executive of Northern Indiana Energy which includes NIPSCO, Kokomo Gas and Northern Indiana Fuel and Light, in a release. "Our employees are the company's most important asset, and the outcome was a direct result of the open and collaborative nature of our relationship with one another."

Staff writer Jim Meenan:
jmeenan@sbtinfo.com
(574) 235-6342
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