| Salt River Project could see as many as half its | | | | give a 10-day notice of an impending strike, as well as |
| employees walk off the job if the Arizona utility | | | | workers in the railroad and airline industries, the latter |
| can’t work out a new labor contract for hourly | | | | two covered by the National Mediation Board. |
| workers. | | | | Other than that, labor restrictions are left up to the |
| The International Brotherhood of Electrical Workers | | | | state, said Nancy Cleeland, director of public affairs for |
| Local 266 has turned down two contracts offered by | | | | the NLRB. |
| SRP management. IBEW attorney Jim Abdo said the | | | | Union workers rejected a second proposal by SRP |
| biggest stumbling block is health insurance costs. | | | | management on Dec. 18 and also voted to strike, if |
| The current contract, which expired Nov. 15 and is | | | | necessary. After each contract rejection, SRP and |
| operating under its second extension, has SRP | | | | union officials agreed to extend the current agreement. |
| covering 100 percent of employee health insurance | | | | While SRP officials wouldn’t comment on its offer |
| costs, but the new offer calls for workers to pay as | | | | or sticking points for the workers, Lane said |
| much as 25 percent via premiums. Abdo would not go | | | | employees would see a 3 percent pay raise in |
| into specifics about how much SRP’s health plan | | | | November, followed by a 1.5 percent pay hike by |
| would cost each worker. SRP spokesman Jeff Lane | | | | mid-2011. Raises in the third year would be negotiated. |
| also declined to comment about the clause in the | | | | Lane said the utility also won’t comment on the |
| proposed contract. | | | | possibility or what it might mean to customers if there |
| Abdo said the contract affects about 3,000 workers | | | | is a walk-out. |
| at SRP, while the company says the number of hourly | | | | Health care costs and premiums also were big sticking |
| workers that would be affected is about 2,300. | | | | points in the down-to-the-wire negotiations between |
| Abdo said the contract under negotiation would be for | | | | United Food & Commercial Workers Union |
| three years. Talks will start again in early January, the | | | | workers and the Fry’s Food Stores and Safeway |
| union and SRP confirmed. The third deadline to reach | | | | supermarket chains. Twenty-five thousands grocery |
| a deal is Jan. 31. | | | | workers were poised to strike before a last-minute |
| Abdo said if there is no movement in the January | | | | compromise in November over pay and health |
| negotiations, union workers could walk out sometime | | | | insurance. |
| during the first quarter, though he hopes a deal can | | | | In Los Angeles earlier this year, a last-minute deal |
| reached. | | | | averted a strike between Southern California Gas and |
| “Nobody really wants to strike,” Abdo said. | | | | members of the Utility Workers Union of America, |
| The labor agreement covers workers who repair and | | | | which clashed about the economy and compensation. |
| service SRP utility lines as well as meter readers, | | | | SRP, like other utilities in the state, has been hit |
| electricians, machinists, customer service workers and | | | | financially with a drop in Arizona’s growth rate |
| other hourly employees. SRP, which supplies water | | | | resulting in a decline of new customers. |
| and power to 930,000 customers in the Valley, has | | | | This week, the company put forth a new proposal for |
| 4,500 workers statewide. The hourly collective | | | | a rate increase to take affect this spring that is about |
| bargaining agreement applies to both aspects of | | | | half the initial request of last summer. The proposed |
| SRP’s business. | | | | rate increase is about 4.9 percent, or about $5.95 per |
| How a work stoppage would affect SRP is unclear. | | | | month on an average home, officials said. |
| Not all of the 2,300 workers SRP says are hourly are | | | | The request to temper the increase came from the |
| in the union, and the state’s right-to-work laws do | | | | SRP board of directors, which sought to lessen the |
| not allow for “closed shops” that require | | | | impact on ratepayers. The board also asked the |
| employees to join the union. | | | | company’s management to look for cost savings. |
| “SRP maintains a work force contingency plan to | | | | With less money for growth and the prospect of |
| ensure that we can continue to provide reliable water | | | | cutting back on infrastructure, SRP could hold off on |
| and power and customer service,” Lane said. | | | | employee raises, as well as cut up to 100 positions |
| “We can’t comment on specific actions, | | | | through attrition or even call for layoffs by the end of |
| however.” | | | | its fiscal year in April. |
| No federal labor laws would bar workers from striking. | | | | Lane said the labor negotiations and the rate requests |
| The National Labor Relations Board has restrictions | | | | are viewed as separate processes by the utility. |
| only for union workers at hospitals where they must | | | | |