Group seeks to pull plug on IBEW*
CHUGACH: Union wants contract extension; consumer advocates growl. 
Anchorage Daily News - 3/28/02
By Sarana Schell 

Consumer advocates are clashing with management at Chugach Electric Association over union wages at the power cooperative.

The International Brotherhood of Electrical Workers has asked the utility to extend its contract another three years. Two-thirds of Chugach's 370 employees are IBEW members whose contract expires at the end of June 2003.

Chugach general manager Gene Bjornstad, who is retiring in May, has recommended the board extend the contract, giving raises to union employees. So has the board's finance committee. 

Chugach Consumers, a consumer advocacy group, insists the utility should negotiate the contract to push down what the group considers "extremely high" labor costs and make electricity rates lower. Anchorage-based Chugach is the largest electric utility in Alaska.

"It's important that this contract be negotiated, not just rubber stamped," said Ray Kreig of Chugach Consumers. "You don't buy a car at list price, and a member-owned cooperative should not do this either."

Kreig, a former Chugach board president, maintains that an arbitration agreement between the utility and the union for the past 13 years has made it hard for Chugach's board to negotiate effectively. The board worked to end that agreement, Kreig said, and now it's time to press for changes, like paying time and a half instead of double for overtime. 

"I'm not certain Ray has all the facts," said Bjornstad. He said he could not go into detail on the matter, which has been the subject of a closed board session, but did point out the contract raises wages at less than the Consumer Price Index, an economic benchmark that tracks increases in the cost of living.

IBEW business manager Gary Brooks was unavailable for comment.

In a letter last December proposing the contract extension, Brooks suggested that a new manager might like to get a handle on operations and Chugach's relationships with the union and other utilities before taking on labor contract negotiations. Further, such a move toward a stable work environment would foster a productive workforce "free from the anxiety of second-guessing new management's purpose and style."

Chugach board president Bruce Davison said debate over the issue boils down to wage pressure on rates vs. stability for the utility's workforce and management. 

The extension proposal will be debated in a committee meeting at 4 p.m. April 15, said Davison, and at a regular board meeting at 4 p.m. April 17. Both meetings will be at Chugach headquarters and are open to the public, he said.

"It's up to each individual board member to decide what the priorities are and vote accordingly," Davison said. Like Kreig, he encourages Chugach members to inform themselves and speak up.

Another issue under consideration is whether a bylaw saying Chugach should require full and open competitive bidding for contracts is in conflict with existing contracts with the IBEW, Davison said.

"I just think it's important for Chugach members to take an active role in voicing their opinions on this," he said. "The more member opinions and viewpoints we can get, it'll help us make a better decision."

Reporter Sarana Schell can be reached at sschell@adn.com  

http://www.adn.com/business/story/844895p-932017c.html  

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* Chugach Consumers comment:  This is a very good article but the headline writer, in trying to be cute, choose an unfortunate title.   Chugach Consumers does not seek to eliminate the IBEW Union from Chugach Electric.  That is a decision for Chugach employees to make (ie. who represents them).  Chugach Consumers only wants the IBEW to be competitive and fair in what it charges electric consumers, ie. Chugach cooperative members.  

Please send comments or questions to Chugach Consumers