In response to the company’s decision to cancel the 2018 STIP payments, IBEW 1245 Business Manager Tom Dalzell sent the letter below to PG&E Interim CEO John Simon today.
John,
While the number of Local 1245 who are STIP-eligible is dwarfed by the number represented by the ESC and the number of non-bargaining-unit employees, an injury to even a relatively small number of Local 1245 members is an injury to all.
I am writing to ask that the Board reconsider its decision to modify the STIP formula using a 1.5 score for company performance to a zero for company performance.
Our STIP-eligible members (Environmental Field Specialists) are not highly compensated. They, like many members of our bargaining unit, are paid honest middle class wages. Most of them still live from paycheck to paycheck, and so the elimination of their 2018 STIP has created a significant financial hardship.
I understand the Board’s desire to demonstrate that it takes its recent performance seriously, but I ask that they reconsider their STIP modification and limit the modification to Directors and above, leaving regular wage-earners, be they IBEW or ESC or NBU, with the STIP payment that they expected as part of their normal total compensation. I can understand the STIP modification for more highly compensated leaders of the company, especially those who can be said to have responsibilities directly related to the company’s poor performance.
I respect the difficult position that the Board is in, but in the long run doing the right thing for wage-earners like our ESF members.
Thanks for your consideration of this request.
Tom Dalzell