Maine Owl

In light of THIS item from Huffington Post, "Real Health Care Reform -- Not Short-Sighted Take Backs", by Edwin D. Hill, International President of the International Brotherhood of Electrical Workers (IBEW), and THIS diary at Turn Maine Blue, I'm posting below a detailed article on the labor situation at CMP from the Summer 2009 issue of Solidarity News (published by Food AND Medicine/Eastern Maine Labor Council, May 20, 2009). H/T "The Electrical Worker" for posting and Gerald for promoting the diary at Turn Maine Blue.

Union workers balk at benefit cuts at CMP
Solidarity News | Summer 2009

On May 6, Central Maine Power workers represented by the International Brotherhood of Electrical Workers (IBEW) Local Union #1837 voted overwhelmingly to reject the Company's final contract offer and authorize a strike. The final tally was 454-191.

The Union agreed to a contract extension through May 15 while talks continued, but talks broke off without the two sides reaching an agreement. As the Solidarity News went to press, the Union's Negotiating Committee encouraged workers at Central Maine Power to continue to report to work for the time being. While they work without a contract, most of the terms and conditions of the previous Union agreement would remain in effect.

The workers could continue to work without a contract for weeks or months — or they could strike at any time. CMP could also choose to lock out the IBEW-represented workers. IBEW Local 1837 represents approximately 700 workers at Central Maine Power Company. These union members design, build, repair and maintain the electric grid serving the largest customer base of any electric utility in Maine, and provide customer service assistance to residents and businesses in most of Southern, Central and Western Maine.

While many companies are suffering during the current economic downturn, things are going just fine for CMP. The company enjoyed a net profit margin of about 10% last year, or $55 million. That profit margin goes directly out of the State of Maine to CMP’s parent corporation in Spain, Iberdrola. In addition, CMP continues to pay out large cash bonuses to their executives.

In spite of being a profitable and successful company, CMP is demanding major concessions from their workforce, particularly in retirement and healthcare benefits. One company proposal would have eliminated pensions for new hires. Another would have sharply limited health insurance benefits for retirees, making them difficult to afford.

"This is not a case of corporate need," said Dick Rogers, a CMP Service Worker and a member of the Negotiating Committee. "In our eyes, it's a case of corporate greed."

The concessions Central Maine Power is demanding from their employees are only a small portion of their operating expenses, yet those concessions may very well mean that some of their workers will not be able to afford medical insurance and will be forced to seek some form of public assistance for healthcare, thereby shifting this expense from CMP to the taxpayers. CMP also seeks to gut the retirement benefits of new hires, laying the groundwork for a bleak future for Maine retirees.

"I think it's just as lousy as it can be," said Jane Allen, a CMP Dispatcher at their General Office. "New employees must have the same benefits as current employees. Anything else is not acceptable."

As the clock wound down toward the initial contract deadline, Union negotiators continued to try to hammer out a deal with CMP. Although IBEW was willing to discuss concessions if need be, CMP decided to make a final contract offer instead of continuing to negotiate. The Union strongly objected to CMP's bargaining stance and the inclusion of the benefit cuts for new hires.

Company negotiators had told IBEW that they couldn’t believe Union members would vote to strike on behalf of workers who hadn't even been hired yet—but they were wrong. At a Union meeting in early May, one IBEW member who was just months away from retirement made clear just how wrong CMP had been.

"I'm voting against this deal and for the strike," the silver-haired woman said. "I may lose a lot, but if someone hadn't stood up for us years ago, where would we be now?"

The Union’s younger members were just as outraged—maybe even more so—by the Company's stance. 34-year-old Lineworker Sam Godin was among them.

"I think CMP's offer was horrible at best," Godin said. "They've made very little effort to find a middle ground with us."

Central Maine Power's workers have said it loud and clear: They aren't willing to give up on their healthcare and the healthcare of their families. And they're not willing to give up on the financial wellbeing of the next generation of Maine workers just for greater corporate profits and larger executive bonuses.