Message-ID: <2491034.1075854842599.JavaMail.evans@thyme> Date: Thu, 28 Jun 2001 08:39:59 -0700 (PDT) From: m..presto@enron.com To: steve.gim@enron.com Subject: RE: Labor Update 6/28/01 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Presto, Kevin M. X-To: Gim, Steve X-cc: X-bcc: X-Folder: \Presto, Kevin M (Non-Privileged)\Presto, Kevin M.\Sent Items X-Origin: Presto-K X-FileName: Presto, Kevin M (Non-Privileged).pst As you can see, I was copied on the original e-mail. -----Original Message----- From: Gim, Steve Sent: Thursday, June 28, 2001 10:39 AM To: Presto, Kevin M.; Sturm, Fletcher J.; Herndon, Rogers; Davis, Mark Dana; Gilbert-smith, Doug; Will, Lloyd; Imai, Rika; Mayor, Philip; Cuilla, Martin; Shively, Hunter S. Cc: Walsh, Kristin Subject: RE: Labor Update 6/28/01 -----Original Message----- From: Imai, Rika Sent: Thursday, June 28, 2001 10:37 AM To: Gim, Steve Subject: FW: Labor Update 6/28/01 Importance: High -----Original Message----- From: Walsh, Kristin Sent: Thursday, June 28, 2001 9:14 AM To: Presto, Kevin M.; Sturm, Fletcher J.; Herndon, Rogers; Davis, Mark Dana; Gilbert-smith, Doug; Will, Lloyd; Imai, Rika; Mayor, Philip; Cuilla, Martin; Shively, Hunter S. Cc: Tholan, Scott; Holman, Kelly Subject: Labor Update 6/28/01 Importance: High As we reported yesterday and confirmed by the press this morning, the Local 15 went on strike at 6 am today. In addition to walking out on eight plants (listed in yesterday's report and in today's article below), Local 15 also walked out on five peakers. The walk out on the five peakers was again confirmed this morning through a union source, although we have yet to see any press information. We are the following the developments and will keep you posted. Please let us know if you have any questions or further tasking. Thursday June 28, 8:50 am Eastern Time Press Release SOURCE: International Brotherhood of Electrical Workers, AFL-CIO Local 15, International Brotherhood of Electrical Workers, Announces Strike Against Midwest Generation First Local 15 Strike in 50 Years, as Company Refuses to Negotiate in Good Faith NAPERVILLE, Ill., June 28 /PRNewswire/ -- Local 15, International Brotherhood of Electrical Workers (IBEW), AFL-CIO, announced that its 1,150 members went on strike against Midwest Generation, EME, LLC, today at 6 a.m. The union's decision to strike comes after several months of unsuccessful negotiations with representatives of the California-based unit of Edison International Co. Local 15 had proposed a collective bargaining agreement that would retain the ordinary and customary practices and the arbitration awards that have been in place for 13 years. The union also proposed maintaining the progressive discipline procedure that was contained in the previous contract. In response, Midwest Generation told union negotiators that it would reject the union's entire proposal, which includes the retention of existing procedures. ``Because we have proposed no new language, it's unclear what Midwest Generation is trying to accomplish beyond a strike,'' said William H. Starr, President and Business Manager of Local 15, IBEW. ``We understand, given the fact that Midwest Generation is part of a financially troubled California power corporation, that there are concerns about Midwest Generation's ability to operate and maintain its Illinois operations. However, during the course of our negotiations, Midwest Generation representatives informed Local 15 that there was nothing in the union's proposal that would hurt the company's revenues or profitability in today's competitive marketplace.'' Local 15 is also troubled by Midwest Generation's misrepresentations of the union's position in this dispute. For example, Local 15 proposed no contract language to impede or limit the company's use of outside contractors. And it is Midwest Generation, not Local 15, that, after months of refusing to come to the bargaining table, has also refused to bargain in good faith. Formal negotiations began one week after Midwest Generation was forced to sign a settlement agreement with the National Labor Relations Board (NLRB), Region 13, on June 6. The settlement required the company to meet and bargain in good faith with Local 15 for a new contract. The previous contract had expired on March 31, 2001. On May 25, Local 15 announced its members had voted overwhelmingly to authorize a strike against Midwest Generation, with 89% voting in favor of the strike authorization. ``By working without a contract since April 1, our members have demonstrated that they are absolutely dedicated to maintaining service for the Illinois communities that rely on power from Midwest Generation facilities,'' said Starr. ``However, because the company has refused to accept reasonable proposals offered by Local 15, we are forced to strike. It is unfortunate that Midwest Generation has so little regard for its employees, the livelihood of our members and their families and the people of Illinois. We are disappointed, but we will continue to fight for a new contract that is fair, reasonable and mutually beneficial.'' Local 15 members have established picket lines outside of each of Midwest Generation's seven fossil-generating stations in Northern Illinois. The plants supply approximately 40% of the electrical power capacity in the Chicago area. They are: Crawford Station: 3501 S. Pulaski Road, Chicago. Fisk Station: 1111 W. Cermak Road, Chicago. Collins Station: N. side of Pine Bluff Road, 4 miles east of IL Rt. 47, Morris. Joliet Station, #9: 1601 S. Patterson, Joliet. Joliet Station, #29: 1800 Channahon Road, Joliet. Powerton Station: 2 miles south of Pekin, off IL Rt. 29 on Manito Road, Pekin. Waukegan Station: 10 Greenwood Ave., Waukegan. Will County Station: 529 E. Romeo Road, Romeoville. In 1999, Midwest Generation acquired the plants from Commonwealth Edison Co. and entered into a purchase agreement that requires Midwest Generation to sell 80% of the power it generates at peak production to ComEd. ComEd, in turn, sells the power to about 3 million customers in the Chicago area. Several months after Midwest Generation acquired the plants, the company entered into a collective bargaining agreement with Local 15, IBEW, effective from December 15, 1999, until March 31, 2001. Local 15, International Brotherhood of Electrical Workers, AFL-CIO, represents 1,150 operations, production, maintenance and clerical workers at Midwest Generation's seven fossil-generating stations in Northern Illinois. SOURCE: International Brotherhood of Electrical Workers, AFL-CIO