On November 1, Local 1245 reached tentative agreement with PG&E on the terms of a new four-year agreement (2016-2019).
The terms of the general agreement are simple:
- Four-year agreement: 1/1/2016 through 12/31/2019
- 3% on earnings, retroactive to 1/1/2016, for active employees and 2016 retirees
- General wage increase of 12.5% (3%, 3%, 3.25%, 3.25%). The compounded value of the wage increase is 13.1%.
The Company justified reducing the general wage increase from the original 13% because that proposal was made in conjunction with a major redesign of sick leave and short term disability. Our members strongly objected to the redesign of time off, and so that proposal was withdrawn. Without the cost savings that the redesign would have brought, the Company was only willing to offer a 12.5% wage increase. The reduction in wages is less than the lost opportunity for savings to the Company, and a 12.5% increase is still extremely competitive.
The terms of the benefit agreement are also simple:
- A modest improvement in short term disability, benefitting up to 2,400 members a year
- A significant improvement in paid family leave, benefitting several thousand members a year
- New return-to-work language for employees on long term disability, and a prospective change in long term disability that will have a negative impact on approximately 40 members a year.
Below, please find links to two letters from the Company outlining the changes in the new Tentative Agreement. One letter pertains to Physical, and the other pertains to Clerical. Each letter is followed by two attachments; Attachment A contains the specific changes to each relevant contract section, and Attachment B contains the changes to benefits.
The Company also presented new proposals for gas and electric service crews to the ad hoc committees handling those issues. The new proposals continue to require the Company to honor Section 212 of the contract in all call-outs, and now include overtime enhancements for employees in departments with service crews in two situations: 1) weather-related pre-arranged overtime and 2) prearranged overtime associated with major events requiring the opening of the Company EOC.
Given that the new proposals protect 212 call-outs and contain significant improvements in overtime payment for employees in the departments in which service crews will be created, Local 1245 has agreed to sign the service crew letter agreements, but only upon ratification of the general agreements and the benefits agreement.
The proposed letter agreements can be found below. These agreements shall not be signed unless and until the contract and benefit agreements have been ratified.
Local 1245 and the bargaining committee believe that the package tentatively agreed to deserves a yes vote and we recommend ratification. Through tenacity, perseverance and solidarity, the negotiating committee was able to obtain a simple contract that meets the conditions for a contract that our members have articulated. In particular, the Company’s willingness to withdraw the sick leave/short-term-disability redesign proposal and its willingness to work on the service crews through ad hoc committees instead of general negotiations represent a positive outcome of these negotiations.
More information will be mailed to members at their homes. We are immediately starting the ratification procedure and hope to count ballots in mid-December.