Enstar workers strike, citing tactics, pensions

WASILLA — A union representing about 150 workers for local natural gas monopoly Enstar went on strike at 6 a.m., Monday.

The strike comes after one section of union membership voted to reject an offer tentatively ratified by management and union leadership, citing company tactics and potential harm to their pensions in the event that the agreement was adopted. Officials with Enstar did not immediately respond to those concerns Monday. Enstar officials had issued a press release announcing a tentative agreement between the union and the company as recently as the end of July, at which point the two constituent groups of the Local 367 Plumbers and Steamfitter union voted on the agreement. A section representing the company’s clerical employees voted to approve the agreement. But the operations section voted to reject it.

Emergency crews, who fall under the operations section, were instructed to safely conclude existing projects before joining other union members. In the short term, the company, owned by Canadian-based Altagas, is bringing in workers from Michigan to handle emergency situations as they arise, according to union lawyer Chuck Dunnagan.

About a dozen members picketed the Valley operations building on Palmer-Wasilla Highway Monday. Most declined to comment, saying they weren’t authorized to speak to the media.

The strike is unfortunate, said assistant shop steward Art Mongeau.

“It’s sad it had to come to this,” he said.

Union leadership, in a press release issued Monday, accused the company of misconduct and making fair negotiations impossible.

“Enstar has engaged in multiple unfair labor practices which have trashed collective bargaining,” the release reads in part. “Enstar has refused to provide information to the Union, it has intimidated witnesses for reporting Enstar misconduct, it has lied about the funding level of the pension plan, it has denied leave cash-in request of Union employees and it has threatened employees with the loss of health benefits. Enstar’s conduct has made fair bargaining virtually impossible and left employees with no choice but to strike.”

In addition to the conduct accusation, employees say a plan to replace two of three portions of the employee pension plan with a more expensive plan that shifts the investment risk to employees, Dunnagan said. Workers currently receive a three-part pension plan composed of a 2 percent profit sharing arrangement, a matching plan for employee contributions, and a guaranteed monthly payment on retirement.

The union would eliminate the profit-sharing and matching aspects of the plan and replace them with a 5 percent 401(k) plan, motivated in part by market instability seen during the 2008 market crash, Dunnagan said.

“Here’s what I think is driving this: Enstar wants to transfer the investment risk to the employees,” he said. “If we have another meltdown and the pension assets decreases, Enstar won’t be on the hook.”

“2008 scared the hell out of everybody,” Dunnagan added.

Worse still, from the union’s perspective, the risk came with too little reward, Dunnagan said.

“It’s a significant cheapening of benefits,” he said.

Union officials say the strike has been in the works since contract negotiations, which began in December 2013, reached an impasse in June.

Enstar issued a three-sentence statement when asked about the strike.

“We are not in a position to provide any comments on the work stoppage at this time,” the statement reads. “We continue to focus on delivering safe and reliable service to our customers. If you smell gas or have a gas related emergency, please contact your local ENSTAR office.”

Contact Brian O’Connor at 352-2269 or brian.oconnor@frontiersman.com.