GEN-ON IMPLEMENTING SEVERANCE AT POTRERO PLANT

GenOn Energy, formed when Mirant combined with RRI Energy, is implementing its severance plan for the Potrero Power Plant, one of three Bay Area plans the company operates.

The decision comes in anticipation of the California Independent System Operator cancelling the “Reliability Must-Run” status for the Potrero plant.

The severance plan, negotiated between Mirant and IBEW Local 1245, will downsize the bargaining unit workforce by 22 members—the number of bargaining unit employees at Potrero Power Plant.

The plan has two components, voluntary and involuntary severance, according to Business Rep. Al Fortier.

In the voluntary phase, bargaining unit members had until Jan 14, 2011 to submit voluntary severance forms.

“Volunteers are chosen within functional groups, with preference given to Potrero employees, then most senior employees at Pittsburg and Contra Costa within functional groups,” said Fortier.

Pittsburg and Contra Costa are GenOn’s other two Bay Area power plants with IBEW-represented employees.

If insufficient employees elect voluntary severance within a functional group, the involuntary severance process will be implemented. Only employees hired after March 8, 2007 are subject to the involuntary severance process.

All severed employees are eligible for an enhanced severance package based on years of service. GenOn anticipates that they will begin to lay off employees in March 2011.

“On a good note, Pittsburg Power Plant Unit 7 got a contract for three more years, with an option for two more,” said Fortier.