Northern Indiana Public Service Company’s union gave its negotiating committee the authority to call a strike over the weekend.
The membership of United Steel Workers Local 12775 voted with more than 98% approval to give the committee authority to call a strike amid contract negotiations, according to a letter from the union.
For its part, Local 12775 doesn’t want to come to a strike, its vice president Vernon Beck said Monday afternoon. Having gone through a strike in the 1980s, that’s the last thing anyone wants, he said.
But when the clock strikes midnight March 31, union negotiators will either get a contract extension, agree to work without a contract while negotiating continues, get locked out by the company or go on strike, he said.
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“We’re trying to come to a resolution by (Tuesday) but they’re moving very slowly,” Beck said. “We’re not even asking for any major changes.”
Particularly concerning to the union is NIPSCO’s insistence on having “flexibility” to hire more outside contractors, Beck said. Currently, there are more contractors working on several projects than there are NIPSCO employees, he said.
“(Management) is refusing to tell us how much they’re paying for these contractors, but from what we can piece together, they’re getting $100 to $125 per day for per diem, then anywhere between $19 to $70 per hour, depending on the trucks they bring to the site and an hourly wage. There’s no way that’s cheaper than having us do the work,” Beck said.
“I’ve been with NIPSCO for 47 years, and every five to seven years, we get a new group of executives who want to change everything. They made record profits, then turn around and tell us they need us to make concessions,” Beck said.
Since the union authorized a strike, its leadership will take the motion to leadership at the USW’s Pittsburgh headquarters, though negotiators have kept Pittsburgh apprised since negotiations began, Beck said.
In a statement to the Post-Tribune, NIPSCO officials said the utility company has been working with the union throughout the negotiation process.
“We are engaging constructively in the negotiation process and working to obtain an agreement that supports long-term customer needs. These discussions are part of our broader effort to continually enhance safety, improve the customer experience and strengthen operations,” according to the company’s statement.
The NIPSCO statement didn’t directly address the strike authorization vote, but the company acknowledged employees’ roles in delivering utility service.
“Our employees play a vital role in serving our communities, and we value their contributions. Our priority is to maintain safe and reliable service while also supporting the affordability needs of the families and businesses that have relied on us for more than a century,” according to the company’s statement.
The current contract has been updated over decades, “and some of its rules no longer reflect how a modern utility must operate to serve customers safely, reliably, and responsibly,” according to the company.
The utility company has been focused on affordability, better service, reliability and safety amid contract negotiations. The company has been working toward improving safety, strengthening storm and emergency response, and improving reliability, according to its website.
“We recognize that many customers are feeling real pressure from their energy bills. Modernizing NIPSCO means improving how we operate with greater operational flexibility, while responsibly managing the costs we control so customers can count on safe, reliable service,” according to the company’s website.
NIPSCO employees’ work allows the company to service customers every day, according to the company.
“We remain committed to recognizing that contribution and rewarding their work fairly. We approach negotiations with respect and a commitment to reaching a fair agreement. Our focus is on maintaining the right balance, supporting our people with continuing to deliver dependable, affordable service for customers,” according to the company.
The company’s website on the contract negotiations addresses misinformation shared online about the negotiation process and the use of contractors. Claims have been made that NIPSCO lineworkers aren’t paid well, but the company said NIPSCO lineworkers are among the highest paid in Indiana.
Claims have been made that NIPSCO’s profitability could be used for increases in lineworker pay. The company stated that financial performance “does not automatically translate into unlimited wage increases.”
NIPSCO is a regulated utility, so all rates, costs and investments are reviewed and approved through a public regulatory process. Salaries “must align with what regulators determine is responsible for customers to pay, while still allowing NIPSCO to attract and retain a skilled workforce,” according to the company.
Claims have been made that because NIPSCO lineworkers receive high wages, they are always available during outages. While NIPSCO lineworkers have high wages, they can’t be consistently available during outages, according to the company.
Certain storms or outages don’t meet the current contract rules for premium overtime pay, which translates to fewer incentives for crews to work, according to the company. When lineworkers don’t respond, the company brings in contractors to complete the work.
“Hoosiers feel the impact of these delays and operational challenges. The goal of negotiations is not to reduce pay. It’s to update work rules so we can get the job done faster and safer when customers need power restored,” according to the company.
The company said it uses contractors for critical work when local crews don’t want to work overtime or if a storm response requires a larger response.
This is the second instance of contract negotiations in the region, with BP and its union currently negotiating a new contract. Starting at midnight March 19, union employees picketed near the Whiting refinery after BP initiated a lockout as the company and union still haven’t come to a contract agreement.
“Because the most recent meeting concluded with the company re-issuing an offer, BP is still waiting to hear back from the union on whether the union accepts the offer. BP remains ready to meet and resume negotiations if the union contacts us and expresses an interest in doing so,” BP said in a statement.
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The union has been reaching out to company representatives through official channels, the union president said, but hasn’t heard back.
“This lockout can end as soon as they get back to the table. We want a deal. We want to arrive at an agreement, but they just have to get back to the table,” said United Steelworkers International President Roxanne Brown.
[email protected]; Michelle L. Quinn is a freelance reporter for the Post-Tribune.