With 94 percent turnout and a nearly 2-to-1 vote, union workers for Duke Energy in Indiana rejected the company’s “last, best and final offer” for a new contract Monday.
Unless Duke returns to the bargaining table July 16, the International Brotherhood of Electrical Workers - Local 1393 (IBEW) will seek a strike.
Duke’s 976 employees represented by the IBEW are still reporting to work until a strike is authorized by the local’s business manager, Chris Wilson.
“We realize that a work stoppage doesn't benefit anybody, including the consumer. So that's not a direction that we want to go,” Wilson said. “If there's an opportunity for us to get headway and reach an agreement, that's what we want to try to do.”
Read more: Duke Energy union workers prepare for 'work stoppage' amid stalled contract negotiations
The union says Duke Energy pays its employees below the market average for utilities companies in the state. Although the utility’s latest proposal includes annual wage increases (the largest package the company has ever proposed to the union), the IBEW said it still falls short.
Besides a pay increase, the union wants a $25 reduction for insurance premiums and an end to Duke’s plans to eliminate incentive bonuses and healthcare for retirees.
“We've seen across national media people all over this country just demanding high wages and increases in benefits. From our perspective, we're not doing that,” Wilson said. “We're trying to get what the market average is and ask what's reasonable.”
Duke Energy declined an interview request, but spokesperson Angeline Protogere said in a written statement: “We have great respect for all our employees and the important work they perform. In light of the vote by the union, we are in communications with union leadership about resuming negotiations.”
Protogere added that Duke has contingency plans if there is a work stoppage.
“Our goal is always to reach a mutually beneficial agreement,” she said.
Indiana has seen storms and heat waves this year that tested the resilience of its power grid. Duke Energy crews have been responsible for restoring electricity to homes and businesses.
Duke reported its highest ever gross quarterly profits this spring after the state approved a $395 million rate increase, which Duke says is necessary for strengthening the power grid.
