As announced earlier, Local 1245 has negotiated bankruptcy exit terms with the Company for our members including a layoff moratorium, generous annual wage increases, extension of our collective bargaining agreements, and no member cost increases for medical benefits through 2025.
After consulting with numerous attorneys representing Local 1245 in both regulatory and bankruptcy capacities, it has been determined the exit terms will not be subject to member ratification. Our attorneys unanimously concluded, once the PG&E Plan of Reorganization is approved by the Bankruptcy Court, the exit terms will be part of a court order, binding on all parties and not subject to modification.
The bankruptcy has presented extraordinary circumstances requiring dynamic responses to ever changing conditions. Thanks to the strength of our membership, we were able shape those responses into no concessions from our members at all, only improvements. I think it is fair to say, if you look at a typical bankruptcy filing, this is not the norm. Typically, in a company bankruptcy, unions make significant concessions in both pay and benefits. I see this as a significant and important demonstration of the strength of our bargaining unit to the company.
During my tenure as Business Manager, we have erred on the side of voting agreements. For the first time ever, we started submitting letter agreements with any concessions to our members for ratification. We will engage in ad hoc negotiations between now and the end of 2025, with our standard rules for ratification in place. There should be no doubt about our commitment within Local 1245 to democracy at an unprecedented level.
If you have any questions or comments, please feel free to contact me at firstname.lastname@example.org.
–Tom Dalzell, IBEW 1245 Business Manager