Northern Indiana Public Service Company locked out its employees, who are with the United Steelworkers Local Union 12775 and 13796, Thursday afternoon as the company and the unions couldn’t reach an agreement on contract negotiations.
NIPSCO said in a statement that the decision to lock out employees came after months of negotiations, in January, “that failed to produce a tentative agreement” after the contract expired March 31.
NIPSCO and the unions agreed to extend the contract through 4 p.m. April 2. When the union and the company couldn’t reach an agreement on the offer, NIPSCO initiated a lockout of employees.
The United Steelworkers issued a statement Thursday condemning the lockout of 1,600 workers across the two unions. The employees were willing to work as contract negotiations continue, according to a statement.
“This lockout is a reckless decision that puts profits ahead of the welfare of out communities,” said USW International president Roxanne Brown in the statement. “USW members keep this system running safely and efficiently, but instead of bargaining in good faith, NIPSCO chose to shut them out and double down on proposals that would erode job security and jeopardize safety for workers and the public alike.”
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NIPSCO President Vince Parisi said in a statement that the company’s offer balances safety, service reliability, emergency response and customer affordability with wage increases, benefit enhancements, safety and career growth opportunities for employees.
“We have negotiated in good faith from day one. We are proud to offer a proposal that demonstrates our commitment to our customers, communities and employees,” Parisi said. “We remain ready to finalize an agreement that is more than fair, competitive, and best positions NIPSCO to continue delivering safe, reliable energy for its community.”
The most recent NIPSCO offer to the unions includes a 4% wage increase for physical and clerical employees, 9% wage increases for line workers and 7% wage increases for senior building mechanics in the first year and a 5% increase in the second year, according to the statement.
The offer also includes a ratification bonus of $5,000 if signed by April 10 as well as two weeks paid parental leave, expanded bereavement leave, enhanced vision benefits and increased safety equipment allowances, according to the statement.
The company has proposed a gradual reduction in continuous work hours from 32 hours to 16 hours and requirements for overtime in the event of an emergency. It also proposed new career opportunities like lead solar technician, permanent working foreman and gas combo roles, according to the statement.
The union has requested double-time pay for hours worked beyond a regular shift and in certain other instances, which the company has said it can’t support because the requests “are not industry standard,” according to the statement.
Amid the lockout, NISPCO said it will work with trained non-represented employees, qualified contractors, and support from other companies to provide service.
“All work is being performed under established safety procedures and supervision,” according to the NIPSCO statement. “The company remains available to continue discussions with union leadership and to work toward a ratified collective bargaining agreement.”
NIPSCO has pushed to expand contract work over work done by union members, Brown said, which takes work away from union members and money from their families.
“At the same time, the company demands excessive overtime acceptance rates that would further strain workers who already face long hours and unpredictable schedules, which would create dangerous conditions in an already demanding industry,” Brown said.
USW District 7 Director Mike Millsap said the union has concerns about “the company’s dismissive attitude toward union-driven safety proposals, which gives the impression that the negotiations are focused more on profits than on protecting workers and public safety.”
“Our members want to do their jobs and serve their communities,” Millsap said. “This dispute can be resolved if the company obeys the law, negotiates with us in good faith, and bargains a fair contract.”
Union members held a solidarity showing Thursday across the street from the Hilton Garden Inn in Chesterton, where more than 100 people came to show support and most held signs.
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“They are frustrated with the company,” said Local 12275 vice president Vernon Beck on Thursday.
When asked if members are prepared for a lockout, Vernon said, “I have never seen this much solidarity in years.”
“I am very pleased with the way they are responding,” Beck said. “They are fed up with corporate greed, and they know that we have to take a stand.”
The union opposes the cut to continuous hours because if crews are responding to a project, but reach their hour mark, they don’t want to have to stop work in the middle of the job, Beck said outside the solidarity event.
Beck said Thursday that the company cut back on staffing and “then says that they are not working enough.”
“They caused the problem and then say we’re the problem,” Beck said.