Vectren locks out 265 union workers [The Tribune-Star, Terre Haute, Ind.]

Dec. 17--TERRE HAUTE -- Vectren Energy Delivery of Indiana-North on Friday locked out 265 workers after union employees rejected a new three-year contract.

Union officials call the action disappointing so close to Christmas.

Speaking for the company, spokeswoman Chase Kelley said, "[The lockout] was necessary simply because without a contract in place, we don't know when they may choose to strike or simply walk off the job. So, we had to take the initiative to put our contingency team in place,"

The company's continuity team comprises about 200 management officials, plus an additional 300 contractors, Kelley said.

"We planned for this several months in advance," Kelley said. "While we were optimistic that we could reach a deal, we at the same time run a work-stoppage contingency plan, that says if and when we have a strike or lockout.

These are highly trained and skilled people. In most cases, they are supervisors and former union employees and pull from our neighboring utilities," she said. Among those other utilities are Vectren Energy Delivery of Ohio and Vectren Energy of Indiana-South.

Vectren North serves 570,000 natural gas customers in central and southeast Indiana, which includes the Wabash Valley.

Vectren and union leadership for the International Brotherhood of Electrical Workers No. 1393 and United Steelworkers Local Nos. 12213 and 7441 agreed in October to start negotiations in advance of the Dec. 1 contract expiration.

Vectren extended the contract for two weeks to allow union members to vote on the contract, which included a 2.5-percent pay raise in the first year; 2.75 percent in second year; and 3 percent in third year, employees retiring Jan. 1, 2012, would receive an additional $25 per month to increase monthly supplement to $425 from $400.

More than 80 percent of IBEW and USW membership voted on the contract, with 69 percent of voting against its terms.

"We are hopeful that we can re-engage with the union," Kelley said, "and that they would reconsider our offer. We believe it to be very fair."

Bob Fox, IBEW 1393 business representative, said the contract issue is not about wages or pay increases, but instead the biggest issue to union members "is the company made the decision back in March 2011 to close 16 of the 29 offices that we have members in," and consolidate areas into fewer offices.

That raised safety concerns for workers and customers, Fox said, causing union officials, along with 14 mayors and fire chiefs, to file a complaint with the Indiana Utility Regulatory Commission. That complaint is pending a hearing in February, Fox said.

With fewer offices, employees have to cover larger geographic areas on after-hour calls, Fox said. In a new contract, Vectren is seeking a 50-percent response rate per quarter from union members on after-hour calls or taking disciplinary action.

"We are talking 80 to 90 secondary call outs in a year," Fox said. "The membership feels like it is getting into their personal time now. They have to pull watch once every four weeks and the other three weeks have to respond to emergencies without any consideration like daycare issues or if on a week's vacation. If you don't respond or answer the phone, you are subject to discipline," Fox said.

Vectren, Fox said, has reduced union workers by 11 percent since 2008 through attrition, 45 percent since 1994. "The customers have not seen their rates go down because they have saved that money," Fox said. "It is putting more and more burden on our members. We are concerned someone can get hurt.

"What is cheesy about this whole thing," Fox said, "is we were willing to extend the contract while we worked through this. They made a decision to lock our guys out a week before Christmas. For us, they are the scrooge of corporate America," he said.

Ron Heskett, treasurer for the United Steelworkers No. 7441 in Terre Haute, said the contract removes "a lot of bargaining rights." The Terre Haute office has 21 workers, but covers about 600 square miles in Vermillion, Vigo, Clay and Putnam counties.

The new contract proposal removes retiree health insurance, while a previous contract removed a pension plan for new hirees, replacing that with a 401K plan.

"They are also trying to institute a Tuesday to Saturday work shift that would take away overtime," Heskett said.

Fox said IBEW has asked for a federal mediator to become involved. Fox said IBEW and United Steelworkers union workers plan to walk picket lines "to bring awareness to our plight" next week.

Howard Greninger can be reached at (812) 231-4204 or [email protected].

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