New Labor Agreement Appears to be Good For the Union, But the Takeover Terms Still Stink For Ratepayers

Assemblymember Cahill Reaffirms Opposition, Remains a Bad Deal for CH Customers

May 19, 2013

Kingston, New York – Assemblymember Kevin Cahill (D - Ulster, Dutchess) released the following statement today regarding new developments in the potential absorption of Central Hudson by Fortis, Inc.

“Fortis, Central Hudson and IBEW Local 320 are to be congratulated for going back to the negotiating table and achieving an agreement. While I would have liked to see more worker protections and a clear plan for restoring staffing levels to reflect community needs, according to union leaders, the agreement appears to be more fair than the original representations made by the companies before the PSC. In the unlikely and unwise event that the takeover is approved, this pact will do much more to assure Labor peace and the retention and development of the quality workforce for the near future. The union leadership worked hard to represent their members.

“While the executives of the companies and their largest affiliated organized labor group are on the same page, the deal still stinks for ratepayers. A growing body of political leaders, local governments, community activists and reputable organizations like the AARP have registered significant concerns that remain unaddressed by the negotiated agreement with the union.

“A scant public benefit fund with illusory ratepayer benefits, the failure to provide the same long term assurances for those of us who are forced to buy our electric and gas delivery from this regulated monopoly, the misery protections for those customers who have fallen on hard times, and serious concerns over the impact of NAFTA, to name a few, are issues that remain to require the Public Service Commission to reject this proposed transaction.

“The responsible thing for Central Hudson and Fortis to do is to submit to an evidentiary hearing where they would be required to explain and substantiate the complex facets of the proposed takeover. In the alternative, they should abandon their original proposal or go back to the drawing board and be as circumspect about ratepayers, the environment and international trade issues as they now appear to have been with their union.”

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