(Calif.) -- The International Brotherhood of Electrical Workers (IBEW) Local Union No.1245 workers are at an impasse with PG&E after the utility company rejected the workers' proposal for higher wages following an expired bargaining agreement.
Photo Credit: PG&E.com
The agreement went into effect in January, 2022 and expired on December 31, 2025. During this period of negotiation, PG&E proposed its Best and Final Offer to union workers, offering a five percent general raise increase (GWI), which would be the highest it's been in 40 years.
Additionally, the offer states that PG&E will grant the GWI using standard rounding of five percent, effective in both January 2027 and January 2028.
Conversely, the Final Offer proposed a ten percent increase in employee medical premiums of the cost of the HAP plan and 7.5% of the cost of the HDHP plan. The Union membership rejected this proposal, though, for a second time. Bob Dean, in an October 8 update, stated, “The majority of voting members have again declared that the company’s offer is insufficient.” Following this rejection, the Union has recently notified its intent to modify section 500.1 of its expired agreement with PG&E.
The significance of this modification connects back to last year when the expiration of the Union's bargaining agreement triggered a provision known as “Evergreen”. A message from Bob Dean back in 2025 detailed what this provision would consist of for workers.
“And what Evergreen entails is that all our working conditions, our wages, our benefits will all extend in 2026 as long as we are still negotiating," he said.
Photo Credit: IBEW_1245
This means that other aspects of their terms and agreements, such as no striking, are also still active. Under the Continuity of Service section in their old agreement. It states, “During the term of this Agreement, employees shall not partially or totally abstain from the performance of their duties for [company], including to support a strike or labor action initiated by another union or a strike or labor action taken by a separate bargaining unit of the same union.”
Tying this into section 500.1, which states that the 2025 agreement will remain in effect “year after year” unless written termination is acquired, means the non-strike provision also remains active. An October 13 update from Local Union No. 1245 states that since the ratification was submitted already, both parties agreed to an October 16 deadline to give PG&E time to respond.
Photo Credit: IBEW_1245 / Facebook
OpGov.News reached out to PG&E for a statement on the situation and they responded.
“We believe the proposed contract achieved our original objective to reach an agreement that is affordable to customers and that supports our represented coworkers in feeling known, loved, and proud to work for PG&E. We’ll continue to negotiate with IBEW Local 1245 with the shared goal of strengthening PG&E’s position as a great place to work, so that our teams can do their best work for the customers and hometowns we are privileged to serve. The company remains committed to continuing to bargain in good faith and hopes a new agreement will be reached soon.”
To add to or correct any information in this report, please contact me at yikaileau.w@lead4eearth.org
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