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NEWS-PGE

IBEW, PG&E Reach New Agreement

May 16, 2012

Following negotiations on May 11 and May 15, IBEW Local 1245 has reached a new table agreement with PG&E.

The IBEW Local 1245 Bargaining Committee and Business Manager Tom Dalzell are recommending a “Yes” vote on the new tentative agreement.

The new agreement provides for a 2.75% general wage increase in 2012 (retroactive to Jan. 1, 2012), 2013 and 2014.

The union and company also addressed several concerns related to the proposed medical and cash balance plans:

  • Commitment to maintain certain Health Account terms for long term stability under the health plan. (The four elements are: the deductible, maximum out-of-pocket, co-insurance percentages, and amount of annual contribution to Health Account.)
  • A phased-in approach of the medical plans in 2013 and 2014.
  • Simpler health incentives that also enable employees to have a $0 deductible health plan, and
  • An agreement that current employees who elect to stay in the existing pension plan will not be required to move to the cash balance plan later.

The proposed medical plan puts the focus on keeping employees healthy while at the same time keeping premiums and out-of-pocket costs among the lowest in the nation.

The pension plan preserves pension benefits for current employees, while providing future employees with a cash balance retirement package and enhanced 401(k). The new plan would be provided to employees hired after Jan. 1, 2013 and would be offered as a choice to current employees

Both sides agreed to refer PG&E’s proposal on meals and IBEW’s proposal on safety-related discipline to separate joint committees for resolution. If agreement cannot be reached on safety and discipline, the IBEW will have the right to cancel Letter Agreement 10-36.

Local 1245 will meet with our members in coming weeks to provide complete details of the agreement.

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