SPS BARGAINING UPDATE
You can read or download a complete copy of the Agreement covering contract years November 1, 2016 – October 31, 2019, between SPS and IBEW Local 602 by clicking the download button below.
April 19, 2017
As part of the recently ratified labor agreement between SPS and IBEW Local 602, SPS bargaining unit employees will transition from the Xcel Energy HDHP to the Family Medical Care Plan (FMCP) effective May 1, 2017.
Premium Information
As an enrolled member of Xcel Energy’s HDHP you will automatically be transitioned to the FMCP with the same level of coverage you are currently enrolled in and will pay the new premium offered through the FMCP. The new monthly premiums are as follows:
Employee: $114.10
Employee + Spouse: $216.65
Employee + Child(ren): $202.65
Family: $301.00
You will not be allowed to add or reduce coverage unless you have a qualifying life event such as marriage or birth of a child.
HSA Information
As you transition off of coverage on a High Deductible health plan you are no longer eligible to contribute to an HSA, per IRS rules. However, the funds remaining in your account can be used to pay for eligible medical expenses, without penalty, similarly to how you could use your funds when covered by the HDHP. Below are a few points to consider regarding your account for tax year 2017. For additional information and questions you should consult with a qualified tax advisor.
- Due to IRS regulations, contribution maximums are pro-rated based on your coverage period on the HDHP.
- Effective May 1, 2017 your HSA will no longer be associated with the Xcel Energy group accounts. Therefore, your monthly administration fee will be your responsibility.
- Your My Health Choices eligibility will end April 30th. Awards based on your program completion as of this date will be deposited in your HSA by June 16th.
Note: My Health Choices award contributions count towards your pro-rated yearly maximum HSA contribution.
Resources
FMCP
- Local 602
- nifmcp.com
HSA
My Health Choices
- UnitedHealthCare at 800.326.5506
March 16, 2017
Important news: The Union recently notified the Company that the tentative agreement between the Company and the Union was ratified by the membership. The Company is moving forward to implement the new agreement. This includes revising wage rates and issuing retroactivity checks. The transition of SPS bargaining unit employees to the Family Medical Care Plan will also commence in the near future.
The Company and the Union will provide additional information to the SPS bargaining unit employees on this topic over the next few weeks. The remaining changes in the agreement will be implemented in the future in each of the applicable business units.
Read the Summary of Agreement
Read the Tentative Agreements
Read the FMCP TA
Once the new agreement is signed by the parties it will be posted here and on Xpressnet.
We will share more information as it becomes available.
September 23, 2016
SPS and IBEW Local 602 will hold their first bargaining session on Wednesday, September 28, 2016.
The mutual goal is to modify the current collective bargaining agreement, which is set to expire October 31, 2016. In preparation for bargaining the parties have exchanged their opening letters.
Read the Company’s Opening Letter
Read Local 602’s Opening Letter
Read Local 602’s Initial Proposals
September 8, 2016
You can read or download a complete copy of the Agreement covering contract years November 1, 2014 – October 31, 2016 between SPS and IBEW Local 602 here.
Thank you for your patience while this Agreement was negotiated and arbitrated.
August 1, 2016
The Company recently sent Local 602 notification regarding the implementation of the interest arbitrator’s decision.
July 22, 2015
In summary, the Arbitrator ruled that the term of the agreement will be two years, so that it expires on October 31, 2016. The Arbitrator awarded a 2.5% wage increase retroactively effective on November 1, 2014 and again on November 1, 2015.
The Company will implement the award, including issuing retroactivity checks. We will share more information as it becomes available.
April 24, 2015
As you know, the collective bargaining agreement expired last Halloween, October 31, 2014. Because the Company and the Union have not been able to reach agreement on the remaining items, which are wage increases and term of the Agreement, you have not received a wage increase since November 1, 2013.
This update is to inform you that the Company and the Union have selected Diane Massey to serve as the neutral arbitrator to resolve these open items. The interest arbitration will occur the week of August 3, 2015, and we expect a decision sometime in the Fall.
In their proposals, the Union has deviated from years of SPS compensation practice and philosophy. The SPS compensation philosophy has been for many years that all Journeymen are paid the same. Despite this long-term compensation philosophy, the Local 602 bargaining team has proposed not only a general wage increase for all employees, but also very large increases for a select group of employees. Taking into account the Union’s proposed GWI increases and proposed increases for 14 “special” positions, the overall wage increase would be 4.9%, 4.6%, and 4.3% per year. The Company believes the Union’s demand is unreasonable and unachievable in interest arbitration.
To our knowledge, no Investor Owned Utility within the IBEW District 7 has granted such increases in recent memory.
As noted above, the wage dispute, along with the term of the agreement, is set to be heard by Arbitrator Massey in August. One should not assume the ultimate wage increase awarded will be made retroactive automatically; that is an issue that will be decided at the arbitration.
We believe a general wage increase common for all employees – as has been the parties’ practice – is the best way to resolve this current contract dispute. We have informed the Union we will negotiate such a GWI, but the Union insists on attempting to reap larger increases for the select positions. We ask you to contact the Local 602 bargaining team and leadership to voice your opinion in this matter.
November 24, 2014
On November 20 the Company transmitted two letters to IBEW Local 602 Business Manager Robert Melton.
The first letter was to formally decline the Union’s wage proposal. We believe this wage proposal – which would grant many employees wage increases of 4.9%, 4.6%, and 4.3% or even higher – is unreasonable and unrealistic. We have asked the Union Bargaining Committee to accept the Company’s two-year, 2% per year wage and term proposal.
The second letter describes the Company’s position on Interest Arbitration. This is a matter of great importance to all SPS bargaining unit employees. Please read a summary and see the entire letter at the link entitled “A Message About Interest Arbitration” below.
November 14, 2014
On Friday, November 14th the Company received another corrected version of the Union’s October 28th Wage proposal. This is the 6th version of the Union’s wage proposal so far.
The Company is reviewing that proposal and will provide a written response. You can find the updated proposal at the link entitled “See the Union’s Wage Proposals.”
November 7, 2014
On Friday, November 7th the Company received a corrected version of the Union’s October 28th wage proposal. The Company is reviewing that proposal and will provide a written response.
October 31, 2014
SPS and IBEW Local 602 met on October 27 and 28, 2014 to continue working toward a tentative agreement to succeed the current agreement, which expires on October 31, 2014.
Late in the day on October 28, the Union provided the Company with a revised wage proposal. The Company is reviewing that proposal and will provide a written response. You can find the Union’s revised proposal at the link entitled “See the Union’s Wage Proposals.”
Also, the Company has informed the Union that should the parties not be able to reach agreement and instead proceed to interest arbitration, then the Company will not agree to interest arbitration in future agreements. The Company’s letter discussing this position can be found at the link entitled, “Company Letter Regarding Discontinuance of Interest Arbitration Provision.”
The current collective bargaining agreement will expire tonight, October 31, 2014. Although progress has been made, a tentative agreement has not reached as of today.
You may be wondering, “What happens after tonight if a new agreement has not been reached?” The answer is that even though the CBA expired on October 31, the terms and conditions of the agreement are automatically extended thereafter, providing bargaining unit employees assurance that their existing wages and benefits will continue until either the parties reach an agreement or a decision is rendered by an interest arbitrator.
October 24, 2014
On Friday, October 24th, the Union delivered a revised wage proposal to the Company.
The parties are scheduled to meet again along with the Federal Mediator on October 27-28, 2014.
August 24, 2014
On Friday, October 24th, the Union delivered a revised wage proposal to the Company.
The parties are scheduled to meet again along with the Federal Mediator on October 27-28, 2014.
August 16, 2014
SPS and Local 602 met each day last week, August 11-15, 2014, to bargain a new contract.
The parties exchanged numerous proposals and discussed a variety of topics. These topics included, among others, wages, overtime, departmental work rules, and meal payments.
August 13, 2014
SPS and IBEW Local 602 held their first bargaining session on Monday, August 11, 2014.
The mutual goal is to modify the current collective bargaining agreement, which is set to expire October 31, 2014. The parties discussed bargaining ground rules, exchanged opening remarks, and reviewed the items set out in their respective opening letters.
The parties met again on Tuesday and Wednesday, August 12 and 13, 2014, and are scheduled to meet again on Thursday and Friday, August 14 and 15.
Thus far the Union has presented 15 proposals. The Company has thus far presented 8 proposals.
August 8, 2014
SPS and IBEW Local 602 will begin contract negotiations on Monday, August 11. The mutual goal is to modify the current collective bargaining agreement, which is set to expire October 31, 2014.
The parties will continue bargaining throughout the week of August 11.
Check back here for additional updates.
Xcel Energy and its operating companies unequivocally recognize that IBEW Local 602 is the lawful bargaining representative of SPS bargaining employees. We have no intent or interest in bypassing Local 602 or of dealing directly with SPS bargaining employees. Xcel is providing bargaining related information to SPS bargaining unit employees and their families so they may be fully informed.
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