In September 2008, A Spanish National Company named Iberdrola acquired Energy East Corporation, the parent of New York State Electric and Gas and Rochester Gas and Electric Corp. Because Iberdrola is a foreign company, approval for this purchase was required from federal agencies and five New York regulatory agencies. After all the required hearings were held by these agencies, the only built in protection for workers of these companies was that Iberdrola was to maintain the workforce and benefits at current levels for at least 18 months. After that period it was acceptable to beat up on the worker’s jobs and benefits and Iberdrola didn’t waste any time. Iberdrola and the workers union, the International Brotherhood of Electrical Workers, IBEW, had finalized a contract in January 2010. Two months later, Iberdrola demanded a contract amendment which called for 200 NYSEG call center workers to take as much as a 50% cut in pay or the call center would be closed. “There was no good faith bargaining” said one employee. “We had just agreed to a new contract”.
Vote Pits Worker against Worker “I’ll make you an offer you can’t refuse”
The union called for a vote of its members on the cut in pay amendment demanded by Iberdrola but the vote pitted unionized workers against each other. If the approximately 1,700 members throughout the NYS region represented by the union voted to accept the pay cut for the call center workers then, according to some workers, it would open the door to future cuts for all other workers. Also if they voted against accepting the pay cut amendment, another new provision meant that company linemen would be forced to go out on power line jobs with one man in the bucket truck, instead of two. A vote to allow the closing of the call center would mean that those voting didn’t care about the 200 whose jobs would be lost. A vote to keep the call center workers at current pay levels would create a safety issue for the line men. Iberdrola has succeeded in pitting workers against each other. One employee said that “morale is down, tensions are high and many workers are angry at Iberdrola and the IBEW. As workers we have no protection.”
What is government doing? Siding with big corporations or workers?
All of the hearings on the federal and state level over the purchase of the utility by Iberdrola did nothing to protect the people who have done the work that creates a $400 million profit for Energy East last year. Iberdrola’s profits were almost $4 billion in that same period. Democrat Congressman Hinchey and Democrat Senator Schumer sent a letter to the Chairman of the Iberdrola Board of Directors, Jose Ignacio Sanchez Galan. The letter which begins with Dear Jose, states that Iberdrola’s profits is due in large part to the acquisition of Energy East, therefore the burden of achieving company savings should not be put on the backs of ratepayers and workers in New York. “It is important to recognize, state Schumer and Hinchey, that workers in the NYSEG region are struggling to put food on their tables and keep roofs over their heads and significant, abrupt, reductions to the family income could not come at a worse time for these individuals or the region.” The letter also praises the efforts of the union.
Why give Tax Credits for Union Busting Firms?
What will those politicians who worked to approve Iberdrola’s purchase of Energy East do now about the anti-worker actions of Iberdrola? The politicians approved Iberdrola’s package of $54.8 million for Energy East executives affected by the buyout. They approved hundreds of millions in tax credits that Iberdrola will receive from the U.S. government for the development of wind energy. The executive package and wind tax credit will be paid, in part, by workers who now have less pay, finding child care unaffordable, and no job protection. A family member of one NYSEG worker wants the politicians “to give up the Dear Jose crap and do something that will protect the Iberdrola workers trying to put food on their table.”
What Will the Union Do?
Where is the fight for worker pay and jobs? Has the Democrat Party turned to the trade union leadership to suppress the resistance of the working class? This class is being called upon by Democrat and Republicans to take pay cuts and cuts in government services while also making up for the tax breaks and bail out funds given to corporations like Iberdrola, banks, Wall St. etc. The union could work with other unions and residents in the area to press the politicians they have supported, into taking a stronger role in helping the NYSEG workers. Democrats control the city of Binghamton, Broome County, New York State Assembly, NYS Senate, the US House of Representatives, the US Senate and the Presidency. Almost all of these people have been elected with labor money and backing. The union could call upon other unions and the residents of the community to insist on action against Iberdrola which could include a demand that the company get no multi million dollar wind energy tax deals from the government. Maybe residents, in solidarity, could delay paying their energy bills for a couple of months? The IBEW officers could lead the way. Maybe together we could block the Vestal Parkway for a day.
Where Do We Go from Here?
Many workers expect nothing but doom and gloom out of NYSEG in the future. Those that have been here a long time know that this is the beginning of the end. “We can save a lot of dues every week, if nothing can be done.”
Who will stand with the NYSEG workers?
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