Talks between Wabtec and union at Erie plant off to slow start

May 10, 2023

More than two weeks after Wabtec Corp. began negotiations with its union workforce in Erie, there is little to suggest the two sides are on the same page.

Maintaining the status quo seems to be the theme that runs through Wabtec's initial proposal, issued May 1, four days after talks began on April 27.

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On one item after the next, locals 506 and 618 of the United Electrical, Radio and Machine Workers of America have proposed changes on a long list of topics, including notifying the union of new hires and providing 30-day notice in advance of any layoffs.

To many of those proposals, the company offered one of two responses — either "no change" or "maintain current contract language."

On Friday, Pittsburgh-based Wabtec, which purchased the former GE Transportation in February of 2019, offered the following summation: "After seven days of negotiation meetings, progress towards finalizing a new agreement continues to be slow. UE Locals 506 and 618 have not yet provided Wabtec all of their non-economic proposals and have not responded to the company's April 27 proposal on wages and benefits. Negotiations will resume on May 15."

Wabtec, which is proposing a three-year contract, has submitted a financial proposal that includes one 2% pay raise and three lump payments of $1,500, one to be paid on ratification, and two others to be paid during the term of the contract.

The union, led by Scott Slawson, president of UE Local 506, hasn't yet submitted a financial proposal. But Slawson made it clear in an interview in April with the Erie Times-News that the union would be looking to raise wages for more than 1,400 union workers at the plant in Lawrence Park Township.

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The four-year contract reached in June of 2019 saw the union agree to a progressive wage structure that paid new employees less than so-called legacy employees but provided a 10-year path to reach the same pay scale.

"There is some realization that it is difficult to attract workers when you are not paying the correct wages," Slawson said in an earlier interview. "I will also tell you that our attrition rate among new hires is much higher than it has ever been before. There has got to be some discord with the guy I am working next to, and doing the same job, but I am making $10 or $12 less an hour."

Slawson made it clear this week that the company's financial proposal falls short.

In reference to public comments made by Rafael Santana, CEO of Wabtec, Slawson said, "Your CEO has publicly stated that employees are your No. 1 asset. Employees need to be treated like your No. 1 asset."

He also expressed frustration with the company's rejection of union proposals concerning matters such as work rules and temporary transfers. Disagreements over how to interpret the current four-year contract have led to an unprecedented number of grievances and arbitration cases, he said.

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

"They don't seem to be listening," Slawson said. "So far, the union has not proposed anything other than avenues to alleviate the conflicts we have had over the last four years."

Negotiations, scheduled to be completed by June 9, are held against the backdrop of recent history. It was four years ago, in February and March of 2019, that more than 1,700 union members at Wabtec walked the picket line for nine days before agreeing to return to work and restart contract talks.

There was another reminder of that strike — the union says it was a lockout and state unemployment officials agree — on May 5 when hundreds of UE members carried banners and rallied inside the Wabtec campus.

Slawson, who was out of town and did not attend, called the march a grassroots effort aimed at protesting the company giving employees a delayed notice for the annual plant shutdown and a disagreement over whether Wabtec could dictate when employees took vacation time.

A post on the UE 506 Facebook page put the demonstration in starker terms, saying the march was held "to make it clear to the company that they are willing to fight for the right to strike."

The UE Facebook post also quotes Ryan Mudger, chief steward for Building 12, saying: "There is no accountability at all for this company. And this is why today, the right to strike is going on the table because we need that back. It's the only way we can hold this company accountable for their actions."

Slawson said he remains hopeful the two parties can reach an agreement.

"I will be optimistic until I am not," he said. "If the company starts listening, I think we can get through this. If not, I think the two sides are going to clash pretty hard."

For its part, however, Wabtec's negotiations website underlines the notion that some things have improved under Wabtec, which has hired more than 400 hourly employees over the past few years.

According to the company, "Prior to Wabtec's acquisition of GE Transportation, the plant was losing steam, with significant layoffs over several years. Now, Wabtec and Erie are succeeding and growing together."

Contact Jim Martin at [email protected].