UE members at Wabtec authorize leaders to 'Take whatever actions is necessary'

Time is running short and the distance separating Wabtec Corp. and its union workforce in Erie seems to be substantial.

The divide is big enough that members of locals 506 and 618, which represent more than 1,400 workers at Erie's Wabtec plants, have gone so far as to authorize a strike if negotiations fail.

More:Wabtec-union negotiations set to begin; both sides hopeful about talks

According to a post Monday on the UE 506 website, members have overwhelmingly agreed to "authorize their executive boards to take whatever action is necessary, up to and including a strike, if no tentative agreement is reached by midnight June 9th, 2023."

In recent statements, both Wabtec and the union have said the two parties remain far apart on economic issues.

Differences in wage increase proposals

As of Wednesday, Wabtec was standing by a proposal that included two 2% raises and two lump-sum payments of $1,500 during the life of a three-year agreement.

Meanwhile, the union continued to call for a combination of general wage increases and cost-of-living increases, tied to the consumer price index, over a four-year agreement.

The union is asking for an 11% raise in the first year, followed by three increases of 6% each.

Other major differences continue to separate the two parties, including a progressive wage structure that emerged from the 2019 contract.

More:Talks between Wabtec and union inch ahead as memories of 2019 strike linger

Wabtec entered 2019 negotiations with the intent of maintaining wages for current employees, but creating a lower wage structure for new employees.

Following a nine-day strike after the company's purchase of GE Transportation in February of 2019, the two parties agreed on a compromise.

Wabtec and the union agreed to maintain an average hourly wage of $35 for existing employees, while new employees would be paid an average of $22 an hour. After the agreement, new hires would be able to gradually increase their wages over a 10-year period until they were on par with so-called legacy employees.

The union proposed an end to the progressive wage at the outset of this year's negotiations, which began April 27.

The union's initial proposal called for paying new employees 90% of full wages until the end of a six-month training period when their paychecks would equalize.

More:Wabtec picks up steam as focus moves to new lines of work

The UE has since proposed a compromise: New employees would start at 80% of a full wage, and would earn an additional 5% each six months until reaching full scale at the end of two years.

Wabtec, at the time of its last update, stood by its request to continue the 10-year wage progression.

Among its other proposals, Wabtec has proposed a voluntary retirement incentive program, available to up to 150 bargaining unit employees who have at least 15 years of service. Eligible employees could receive a payment of $20,000 into their 401 (k) accounts.

Hopeful for resolution

James Grunke, CEO of the Erie Regional Chamber and Growth Partnership, said he's hopeful that Wabtec and the union can come to terms by their deadline.

"The union has to do everything they can to take care of their members and Wabtec has to do everything they can for the company and its shareholders," Grunke said. "We hope it's a successful outcome."

Four years after Wabtec purchased GE Transportation, many of the community's initial concerns about new owners have disappeared, he said.

"They have demonstrated themselves to be a great local employer," Grunke said. "We have nothing but good things to say about their leadership, and new jobs are being added to the payroll."

Grunke said he's also concerned about how another strike would shape the public's perception of Erie.

"What message does it send to people looking to relocate their business or their family to Erie?" he said. "We are always concerned about how Erie is portrayed."

For its part, Wabtec's negotiations website provides regular reminders of what's at stake as the company presses to become more competitive.

According to one recent Wabtec post: "While getting new orders from customers is good for the company overall, the plants that complete the work benefit the most. To bring in work for Erie, we need to stay efficient, flexible and competitive."

Scott Slawson, president of UE 506, which represents the largest share of the Erie plant's union workforce, has said repeatedly that he hoped to avoid a strike.

But he's never closed the door on the possibility either.

"Our No. 1 goal is to get a contract," he said in an April 21 interview. "But there is a reason they call it a struggle. If you think things aren't going satisfactorily, at some point withholding your labor is always a real possibility."

Contact Jim Martin at jmartin@timesnews.com.