International Brotherhood of Electrical Workers Local 1547

For immediate Release

January 25, 1996

IBEW responds to Chugach Electric Board's Cost Review for Contracting Alternatives for Transmission Facilities in Alaska

The anti-worker majority on the Chugach Electric Board of Directors sole-sourced a contract for a study ostensibly to explore labor alternatives for the construction of the Northern Intertie. This review was promoted by the boards' refusal to honor a Memorandum of Understanding (MOU) entered into by all the Railbelt Utilities, including Chugach Electric, in 1991. This MOU was arrived at in direct response to the utilities' failure in their efforts to redirect the Susitna Dam Funds for the construction of an Intertie. The MOU states that the IBEW would utilize it's political and public influence toward achieving funding for the Intertie projects. In return, the utilities pledged to utilize Alaskan contractors who are signatory to a labor agreement with the IBEW.

As a result of a concerted effort of the IBEW and the Railbelt Utilities, the legislation authorizing the funding for the Interties passed both Houses of the Legislature in 1993 and was subsequently signed into law. The legislative effort was time consuming and involved a broad coalition of legislative supporters led by then Speaker of the House Ramona Barnes. The intent of the Legislature was to fund these projects and to build them using Alaska crafts people. Recognizing that the project labor agreement approach incorporated in the MOU is a legal and enforceable method of imposing Alaskan-first-hire requirements on a major construction project, the Intertie authorization funding passed both Houses with broad based bi-partisan support.

A vehement anti-union faction has taken over the Chugach board and made it their first order of business to create albor discord within the utility. They have indicated that they do not intend to honor the MOU contract that was entered into and signed by Chugach and have only funded this study to fan the flames.

"A contract was entered into between Chugach, the Railbelt Utilities and the IBEW in 1991. We proved up on our part, and now Chugach wants to renege on their part of the deal. Wha's even worse is they want to dismantle our agreement so they can contract this work out to a Mississippi contractor who is sure to import help and send all of the profits back outside," said Gary Brooks, Business Manager of IBEW Local 1547 in response to Chugach's actions.

Appropriate procedure for contracting the study were not followed. In fact, Kathleen Weeks, Chugach Vice President and member of the anti-IBEW majority, objected to the manner used by Board President Kreig in directing the determination and awarding of the contract and voted against pursuing the study. Numerous factual and procedural errors are apparent, and the obvious anti-worker bias of the authors is readily discernible. "As we have only received a copy late today, we are just beginning to pick this thing apart," said Brooks. "But it shouldn't be too hard. The first glaring error is that they failed to even consider the recently issued Supreme Court case specifically defining the applications of the Little Davis Bacon Act. The lack of consideration of this major piece of legal precedent leads us to believe that Chugach ratepayers got taken for $40,000 by a group of outsiders."

Brooks further questions the integrity of the study's mathematics and conclusions. The IBEW and the Railbelt Utilities have just recently met to review the MOU to insure that it is economical for the utilities and the contractors, and we are at this moment engaged in dialogue to consider contract improvements that would benefit all parties involved. Chugach is well aware of this -- in fac, they were at the table," commented Brooks. "They know darn well that half of the costs that are cited in this study apply to this project."

IBEW is in the process of hiring an independent Alaskan firm to audit the report and detail the numerous errors and factual discrepancies such as the incorrect ratio for apprentices to linemen, the improper calculation for safety meeting costs, the wrong citation for the applicable Davis-Bacon Wage in Alaska, and so forth.

"We are dismayed and disappointed that the Board of Directors of Chugach Electric would throw down such an obvious gauntlet. We have traveled this road before at Chugach and lived through some pretty dark times and we will live through this. Unfortunately the people who work at Chugach and the consumers stand to lose the most in the battle being waged by the CEA Board, and for what reason?" said Brooks.