Negotiations Update; 7-30-10

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LOCAL 2150, I.B.E.W.
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
N56 W13777 SILVER SPRING DRIVE MENOMONEE FALLS, WI 53051
262-252-2552 * 800-551-1151 * FAX 262-703-3520
FORREST L. CEEL, BUSINESS MANAGER
http://www.ibewlocal2150.org


July 30, 2010


IN BOARD NOTICEDear Brothers & Sisters:

NEGOTIATIONS UPDATE

Your bargaining committee has been working all week trying to reach a fair agreement. We are trying to address the company's issues with regard to cost containment and increased flexibility as much as possible; however, we are keeping in mind the wants and needs of our members as we continue to work through these difficult negotiations.

We presented a counter-proposal to the company's medical proposal on Tuesday, July 27. We were disappointed with the company's July 29 response to that counter-proposal. The company remains committed to its proposal of wage freezes, increased medical costs (cost-shifting), and take-aways in Hours of Work, Mileage, Premium Rest, and others. We continue to work diligently on a counter-proposal in response to the company's July 29 counter-proposal.

Due to illness, Matt Polaske, Unit 1 Chairperson and Bargaining Committee member, will be replaced by Brian Hunter, Unit 1 Vice Chair, effective Monday, August 2.

Following is a comprehensive list of both company and union proposals. Updates to the proposals are indicated in blue print. T.A. reflects "Tentative Agreement." Additional information can be found on L.U. 2150's secured "Interchange" web site. The proposals will be updated as negotiations progress.


COMPANY PROPOSAL

Wages
- A 3-year agreement with base wages to be frozen for the term of the agreement.
- COLA (cost of living) will not apply during the term of the agreement.

Benefits
- Medical
- Annual Deductible:
- $300/$600/$900 for In Network
- $600/$1,200/$1,800 for Out of Network
- $450/$900/$1,350 for Out of Area
- Annual Max Out of Pocket (includes ded.):
- $1,250(single)/$2,500(family) for In Network
- $3,000(single)/$6,000(family) for Out of Network
- $2,125(single)/$4,250(family) for Out of Area
- Co-Insurance after Deductible is met:
- In Network, Single/Family - 85%,
- Out of Network, Single/Family - 65%
- Out of Area, Single/Family - 75%
- Employee premium:
- 1/1/11 - 22.5%
- 1/1/12 - 25% 7/29/10 – Modified to 22.5%
- 1/1/13 - 25%
- Eliminate (1/1/11):
- Annual prescription drug out-of-pocket maximums
- Prescription out-of-pocket maximums
- Prescription drug mutualization
- Implement:
- Smoker Premium Surcharge of 30%
- Working Spouse Surcharge of $50/mo.
- Dental
- Employee contributions:
- 1/11 through 12/13 - Single - $12.50; Family - $50.00

LTD
- Employees a second period of disability will be written out of active service after the 180-day waiting period. 7/23/10 – Dropped.
- Mandated Time Off - If government mandates the company to provide paid sick days to
employees, the company wants a cost-neutral outcome. 7/29/10 – Dropped.
- Grievance Procedure – Add a time limit of 10 days in which to notify the company of the union's
intent to pursue grievances. 7/23/10 – Modified time limit to 20 days. T.A.
- Permanent Transfer – Add ability to permanently transfer employees when company deems it
necessary to reallocate resources (in seniority order). 7/23/10 – Modified to include provision
that previously permanently transferred employees will not be required to permanently
transfer to a second location more than 20 miles from the employee's initial location for a
three-year period.
- Hours of Work - The company wants the ability to schedule shifts to meet business need by
eliminating shift windows. Eliminate all language dealing with Staffing in Different Shift Windows.
Eliminate most of the language in Schedule Changes for Day Shift Employees within the shift
window and outside the shift window. Added language that the company may change the start
time of an employee's basic schedule 'to meet the needs of the business.'
- Premium Rest - Eliminate premium rest payment.
- Plant Electrician Hiring – Allow company to directly hire externally for locations not adequately
staffed to support apprentices. 7/29/10 – Modified to directly hire externally for every other vacancy by location and may reserve the right to hire directly from outside the bargaining unit in order to use it at an alternate location and/or later date.
- Residency – Add the following occupations: Leading Hydro Maintenance Mechanic, Hydro
Maintenance Mechanic, Hydro Maintenance Group Leader, Hydro Plant Operator, Leading
Recreation/Materials Specialist, Office Assistant II (Hydro), Office Assistant III (Hydro), Substation
Electrician Group Leader (North and South), Substation Electrician (South), Leading Electrician
(North), Electrician (North), Electrician Group Leader (North), OCB Trans. Bushing Tester (North
and South), Group Leader – Relay, Group Leader – SCADA, Relay/SCADA Group Leader,
Technician – Electrical Testing (North and South), Special Testing Group Leader, and Test
Engineer. 7/23/10 – Modified to delete OA II and OA III (Hydro).
- Drug/Alcohol Testing – Random drug/alcohol testing for all employees.
- Temporary Transfer - Payment only for mileage driven in excess of normal commute.
- Commuting Mileage – Eliminate (including employees required to provide a personal vehicle for
company business and call-out situations).
- Meal Allowance – Eliminate.
- Distribution of Overtime – One list for Troubleshooter, Line Crew Leader, Leading Line Mechanic,
Line Mechanic, Leading URD Installer, URD Installer occupations company-wide based on the bi-
weekly payroll overtime data. List to be zeroed out at beginning of year in same order as that at
end of previous
year.
- Bidding/Selection for CS Seasonals – Restrict seasonal employees hired after August 15, 2010,
from bidding to regular occupations for two years. Exception would allow seasonal employees to
bid on Customer Consultant-Inbound, Customer Consultant-Bilingual, Telecollector, and EIP Specialist occupations after 120 days of initial employment.
- Home Garage Plan - Allow calling out the closest qualified employees for any outages and
hazards. Employees who reside outside of their assigned territory but live within 30 miles of their
headquarters must be in their service territory by the beginning of the scheduled workday.
- Inclement Weather – Employees to proactively look for productive work. If none available,
employees may be released after two hours. 7/19/10 – Modified time to be after four hours.
7/23/10 – Modified to allow for make-up time for lost basic hours at straight time rates. 7/29/10 – Agreed to union counter-proposal that employees will proactively seek productive work. Dropped remainder of proposal.
- Taking Vacation Days Prior to Eligibility – Eliminate. 7/23/10 – Modify to allow borrowing of up
to one week (40 hours) of vacation with supervisory and steward approval. 7/29/10 – Modified changing steward approval to steward notification.
- Major Storm Duty Restoration - Eliminate the $100 advance payment.
- Combine Occupational Groups 110 and 109 into Group 109. 7/29/10 – Dropped.

UNION PROPOSAL

Wages
- Wage increase to be part of total negotiated package. 7/27/10 – Wage increases of 2.9%, 3.5%,
and 4.0% (eff. 8/16/10, 8/16/11, and 8/16/12, respectively).
- Continue COLA provisions of the Labor Agreement.

Benefits
- Modify contribution rates for part-time employees.
- Reference medical and dental plan (Summary Plan Documents) in the Labor Agreement.
- Medical:
- Annual Deductible:
- $150/$450 for In Network
- $200/$600 for Out of Network. 7/27/10 – Modified $410/$1230
- $180/$550 for Out of Area
- Annual Max Out of Pocket (includes ded.):
- $1,200(single)/$1,700(family) for In Network
- $1,300(single)/$1,900(family) for Out of Network. 7/27/10 – Modified - $1701/$2201
- $1,275(single)/$1,850(family) for Out of Area
- Co-Insurance after Deductible is met:
- In Network, Single/Family - 90%,
- Out of Network, Single/Family - 80%. 7/27/10 – Modified 70%
- Out of Area, Single/Family - 85%
- Employee premium:
- 1/1/11 – 20.0%
- 1/1/12 – 20.0%
- 1/1/13 – 20.0%
- Remove $150 limit on physical exams.
- Increase each Vision item $10.
- TMJ surgery to be covered medical expense.
- Infertility treatments to be covered at 50%.
- Lasik/RK surgery to be covered up to max. of $500.
- Hearing Exams – increase maximum to $50 every three years.
- Hearing Aids – increase maximum to $1,000 each ear every three years. 7/27/10 – Modified
to $600 every three years.
- Include AMA-recommended transplants not currently covered by the plan.
- Provide clinical programs currently available to non-union plan to the union plan:
- Clinical Management Solutions
- Include Pharmacogenomics voluntary genetics testing program.
- Offer any cost-saving or cost-neutral plan enhancements implemented in any other
company medical plan for inclusion in the L.U. 2150 negotiated plan.
- Remove lifetime caps as prescribed by National Health Care. 7/21/10 – T.A.
- Discuss payroll deduction for company-sponsored group long-term care insurance.
- Dental
- Freeze dental premiums at current rate.
- Increase maximum coverage to $2,500. 7/27/10 – Modified to $2,000.
- Increase maximum orthodontia coverage to $2,500 7/27/10 – Modified to $2,000.
- Coverage for dental implants not to exceed the cost incurred for bridges.

Pension - WE & WG
- Increase contribution amount to 7%.
- Increase 401(k) match to 5% of 8% contribution by employee.
- Extend grandfathered annuity plan for WE.
- Reinstate grandfathered annuity for WG.
- Pension eligible earnings to include all hours worked.

Retiree Health Care
-. Continue 50-50 match.
- Remove lifetime caps.

Long-Term Disability – 7/27/10 – Dropped.
- Change waiting period to 90 days.
- Change commencement to 91 days.
- Increase benefit level from 60% to 70%.

Other
- Modify Duration section to reflect term of agreement. 6/28/10 - T.A.
- Modify Agency/Temporary Employee section. 6/28/10 – T.A.
- Modify Discipline to add: "Any/all written record(s) of coaching, counseling, discipline, and/or
suspension shall be removed from the employee's file after three (3) years." 6/30/10 – Modified
to five (5) years. 7/27/10 – Dropped.
- Modify Selection/Bidding to add: "Furthermore, if an employee is returned to his/her former
occupation, his/her Occupational Seniority shall be restored as if he/she had not left that
occupation." 6/28/10 – T.A.
- Increase shift premiums in accordance with any general wage increase.
- Modify Exceptions to Shift Windows:
- Remove item #4.
- Remove item #5.
- Include Generation Specialist occupation to item #15.
- Modify call-out error resolution to include scheduled overtime and include as part of the labor
agreement.
- Modify Notice of Scheduled Overtime & Cancellation to reflect guarantee of minimum of two hours
at the rate of time and one-half (double-time on Sundays and holidays) when scheduled to work
overtime. 7/20/10 - Dropped.
- Remove reference to Point Beach in Section 22.16. 6/28/10 - T.A.
- Modify On-Call (increasing hours for Saturday, Sunday, and Holidays). 7/27/10 – Dropped.
Discuss mechanics of gas district employee on-call. 6/30/10 – Dropped.
- Extend Northern Storm Letter Agreement, modifying language to reflect emergency work is
performed on We Energies property. 7/27/10 – Dropped.
- Modify Emergency Storm Restoration to reflect double-time. 7/27/10 – Modified to better define
geographic areas, creating a northwest Wisconsin region.
- Meal Allowance – Increase incremental allowances by $2.00. 6/30/10 – Modified increase to
$1.75. 7/27/10 – Dropped.
- Flame Retardant Clothing – Increase allotments by $350.00 and $116.66. 6/30/10 – Modified
amounts to be $144.75 and $48.25 respectively.
- Modify safety eyeglasses to include option for no-line bifocals.
- Revise Safety Study Committee provision.
- Increase safety shoe allowance. 6/30/10 – Modify to reflect no change in allowance but allow
for annual allotments to accumulate.
- Increase uniform allowance to $300 and $225 for Gas Seasonal Employees and include WG
employees. 7/20/10 – Modified amounts to be $250 and $185. 7/27/10 – Modified to be 100%
reimbursement up to $250 annually.
- Increase payout of unused sick time. 7/27/10 – Modify to explore option of creation of VEBA
and/or 401(a) account for unused sick time payout.
- Modify make-whole provision to allow for use of unused sick time once make-whole maximum pay
has been reached. 7/27/10 – Dropped.
- Modify Excused Absence to exclude death in family from absence percentage calculation.
- Modify Vacation Eligibility reducing eligibility timelines for Class 3, 4, 5, and 6 vacations and add
additional Classes 7, 8, and 9. Include provision to allow purchase of vacation. 7/20/10 –
Modified to only reduce vacation eligibility timelines for Class 3, 4, and 5 vacations.
7/27/10 – Modified to drop proposed vacation eligibility guidelines, but allow for purchase
of up to five days of vacation.
- Qualify for personal day after one year instead of two years. Add additional personal day.
7/27/10 – Dropped.
- Increase holidays to include Dr. M. L. King birthday. 7/27/10 – Dropped.
- Modify Mileage provision:
- Increase temporary transfer amounts.
- Modify permanent transfer allowance to reflect IRS mileage rate.
- Modify Out-of-Town Assignment provisions to reflect CONUS (Continental United States rates
similar to the IRS mileage rate standard for business reimbursement).
- Modify Allowable Travel Time to reflect additional time needed at airports for security
purposes. 7/27/10 – T.A.
- Remove Point Beach provision. 6/28/10 – T.A.
- Increase life insurance upon retirement. 7/20/10 – Dropped.
- Modify Exhibit "F" to incorporate current practices.
- Modify Home Garage Plan to include current practice for DOT truck inspections, allow
grandfathered employees living outside their service territory to delay arrival in the service territory
by 15 minutes in recognition of the DOT truck inspection, and all time beyond the normally
scheduled workday (including travel time) will be paid at the applicable overtime rate. 7/20/10 –
Modify proposal to reflect reduction in definition of "significant number" to 50.-
Residency – Modify to allow grandfathered employees to move to a closer residence yet still
outside the residency requirement, and bid to a location closer to their residence, still outside the
residency and remain grandfathered. Update to reflect current crossroads and occupations.
6/30/10 – Modify incorporating company's language proposal (excl. additional
occupations).
- Modify Shift Window Exception letter to reflect current exceptions.
- Include Special Enhanced Severance for term of contract. 6/30/10 – Modify to continue
existing Enhanced Severance Plan for term of contract. 7/19/10 – T.A.
- Incorporate contract interpretations into labor agreement.

WG District Employees & Seasonals
- Increase number of sick days for Gas Seasonal Employees and allow to use for sick family/death
in family.
- Increase number of personal days for Gas Seasonal Employees.
- Increase FlexBen amounts.
- Modify seniority listing. 6/28/10 – T.A.

CS Seasonal Employees
- Increase number of personal days.
- Increase number of sick days and allow to use for sick family/death in family.
- Modify wage rates prior to any negotiated wage increase.
- Increase FlexBen amounts.

Customer Contact Center Agreement
- Any negotiated wage increase and COLA to apply to all covered occupations.
- Merit pay to continue.
- Company will not contract out call center work during term of agreement.
- Remove two-year freeze on movement (bidding/selection).

In spite of the company’s proposal, your Bargaining Committee asks you to be the best workforce possible. Your hard work, keeping safety and service to our customers as priorities, along with support of your Bargaining Committee are the keys for successful negotiations.

In solidarity,


Your Bargaining Committee

Forrest Ceel, Mike Chartier, Mike Follett, Mike Bruening, Cathie Tikkanen, Mike Lewin, Nancy Wagner, Matt Polaske (Unit 1), Rob Wolfe (Unit 3), Craig Lukasavitz (Unit 4), Teri Cotton (Unit 5), Bob Stone (Unit 6), Jeff Klein (Unit 7), DiAnn Wagner (Unit 10), Hollie O’Neill (Unit 11), Greg Ebert (Unit 12)