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Pallone Criticizes JCP&L's Position in Strike
Cites health benefits proposal as unreasonable |
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Long Branch, NJ --- U.S. Rep. Frank Pallone, Jr. (D-NJ) today called upon JCP&L and its parent company, Ohio based FirstEnergy Corp., to end the six week long strike with its 1,350 workers in New Jersey.
The New Jersey congressman believes the company ’s current retiree health care proposal, the major remaining financial issue between the two sides, is unreasonable and should be taken off the negotiating table.
JCP&L ’s proposal would force current employees to pay a 400-percent increase in their health benefits. Then, if an employee retires over the three years of this proposed contract, he or she would then be required to pay an additional 400 to 600-percent increase toward their healthcare. Furthermore, after the contract expires, the company could then make any changes to retiree’s benefits without further negotiation.
" The JCP&L retiree health care proposal is unreasonable and should be shelved immediately so serious negotiations can continue," Pallone said. "It’s simply unacceptable that JCP&L would try to force these high costs onto i ts employees. This strike has dragged on too long, and it’s time for JCP&L to recognize the right of future retirees to receive the health care they were promised.
" It’s hard for me to understand the position JCP&L is taking in these negotiations," Pallone continued. "This is not a simple conflict between a union and an employer. I view this as a dispute over priorities, with our workers and ratepayers in New Jersey on one side and an out of state company, which is not prioritizing New Jersey, on the other."
Pallone is concerned that FirstEnergy is taking a hardnosed position in New Jersey to set a precedent for negotiations over healthcare benefits in other states.
Pallone is puzzled over why the company is placing so much importance on the issue of health care costs. He says the company, which has saved at least $10.5 million over the last six weeks of the strike in employee salaries and benefits, could essentially take those funds and fully fund its retirees ’ health care needs, estimated at $3.5 million annually, for the three years of the contract.
"JCP&L is not acting responsibly to the citizens of New Jersey it services by prolonging this action," Pallone continued. "I’m concerned the service the energy company provides could seriously suffer if this strike does not end immediately."
Before the strike began and in the first weeks of the action, Pallone made attempts to bring the two sides together toward an agreement. While talks will continue today, Pallone is fearful that negotiations have hit an impasse because of JCP&L's position on retiree healthcare benefits. |
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