Dominion Disappointed in Union's Rejection
of Settlement Proposal
RICHMOND, Va. - Dominion (NYSE: D) said Thursday that the leadership of
the International Brotherhood of Electrical Workers Local 50 had turned down
the company's latest labor contract proposal that called for a 16.5 percent
compounded wage increase over five years along with other pension and medical
benefits.
The IBEW Local 50 further notified the company that it was
calling a work stoppage to begin at noon Friday. This would be the first labor
action at Dominion Virginia Power since 1964.
"We are extremely disappointed that the union leadership
rejected this proposal," said Edgar M. Roach Jr., president and chief executive
officer of Dominion Virginia Power. "We worked long and hard to address
issues that the union told us were important while achieving a balance among
its members, the company and Dominion's other union and non-union employees.
"The negotiations have been very professional. It is
unfortunate that we came so close this time, yet remain apart. While we have
contingency plans in place and ready to keep our customers' lights on, we would
prefer that our employees remain at work."
The company and the IBEW Local 50 began negotiating in January
to craft a contract to succeed a three-year agreement that was ratified in 1995
and extended twice, each time for two years. IBEW Local 50 represents workers
at Dominion Virginia Power and Dominion North Carolina Power, which deliver
electricity to more than 2 million customers, and Dominion Energy's power stations
in Virginia and Mt. Storm, W.Va. The workers represented include linemen, meter
readers, electricians 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 3.9 million franchise natural gas and electric
customers in five states. For more information about Dominion, visit the company's
Web site at http://www.dom.com.
