Dominion Presents Strike Settlement Proposal
To Union With Improved Pension Plan
Enhanced Medical, Dental and Vision Coverage
from Previous Offer Retained
Average Base Pay Would Exceed $51,000
RICHMOND, Va. - To settle a 12-day
strike, Dominion (NYSE: D) Wednesday offered the union that represents its electric
workers a five-year contract proposal that provides a better pension plan than
their current contract.
The company's strike settlement offer also includes the same
improvements in medical, dental and vision care made previously. Guaranteed
annual pay raises would total nearly 15 percent over the life of the contract,
bringing the average base wage to more than $51,000 before overtime, supplements
and shift differentials. The difference between this salary increase proposal
and the previous one of 16.5 percent would be used to fund an enhanced early
retirement supplement. When combined with the existing supplement, a veteran
employee could receive up to $50,000 in additional retirement funds.
"For the past few weeks, the union leadership and striking
employees have asked us to improve their retirement. We appreciate the unique
retirement needs that many of our employees have because of the physically demanding
nature of their work. The plan we presented today includes a better retirement
package than they presently have, while the total offer remains in line with
the pay and benefits of our other 13,000 union and non-union employees,"
said Edgar M. Roach Jr., president and chief executive officer of Dominion Virginia
Power.
The International Brotherhood of Electrical Workers Local
50 and Dominion began negotiating a contract in late January. The 3,700 employees
represented by the union began a strike Aug. 2. Dominion has been able to maintain
smooth operations during the strike through the use of salaried employees and
contractors.
The offer made Wednesday differs from the one made Aug. 1
in two key retirement areas:
An enhanced early-retirement supplement. When combined
with the current supplement, employees who retire between 55 and 62 with at
least 30 years of credited service by 12/31/02 would receive an additional
$600 a month until they become eligible for Social Security. The pension formula
remains unchanged from the previous contract.
Retirees would continue to have their medical premiums
paid in full by a fund into which the company would contribute $5 million,
the same as in the previous offer. The fund would pay for about 16 percent
of the annual medical premiums of retirees with 30 or more years of service.
The company would pay the remaining 84 percent. Consistent with the union's
request, the annual "Success Sharing" incentive payment would be
shifted into the retirement package.
The proposed pay increases exceed the current inflation rate.
Base pay raises would be 2.75 percent annually in the first four years of the
contract and 3 percent in the fifth year. By comparison, the inflation rate
was 1.1 percent during the last 12 months. The raises will total 14.8 percent
compounded over five years. By comparison, the inflation rate over the last
five years was 12.2 percent.
"We have heard from many members of the union recently
that the strike is not about pay increases, but about retirement benefits. We
believe this offer addresses the workers' concerns while still providing for
adequate pay raises," said Thomas F. Farrell II, chief executive officer
of Dominion Energy.
IBEW Local 50 represents workers at Dominion Virginia Power
and Dominion North Carolina Power, which delivers electricity to more than 2
million customers, and Dominion Energy's power stations in Virginia, North Carolina
and Mt. Storm, W.Va. The workers represented include meter readers, linemen
and power station operators.
Dominion is one of the nation's largest producers of energy,
with a production capability of more than 3 trillion British thermal unit of
energy per day. Dominion also serves 3.8 million franchise natural gas and electric
customers in five states. For more information about Dominion, visit the company's
Web site at www.dom.com.
