Drooid Logo
Back to story perspectives

Full Breakdown

PECO Employees Face Contract Expiration Amidst Tense Negotiations

4/1/2026, 6:43:00 AM

Contract Expiration and Potential Strike

Unionized employees of PECO, represented by the International Brotherhood of Electrical Workers (IBEW) Local 614, are set to begin work without a contract as of Wednesday. Negotiations, which have been ongoing since January, reached a critical point just before the midnight deadline. Union leaders have indicated that a work stoppage may be necessary if an agreement is not reached soon. Larry Anastasi, president of IBEW Local 614, emphasized the union's awareness of the potential impact on the millions who rely on PECO services, stating, “The way things are going right now, we haven’t moved on anything of substance.”

Key Issues in Negotiations

The primary sticking points in the negotiations include the union's demand to eliminate PECO’s tiered retirement benefit system, which affects employees hired after 2021 by denying them pensions. Nicole LeVine, PECO's Senior Vice President and COO, countered that the company offers competitive 401(k) and medical benefits, asserting that linemen earn an average of $243,000 annually, including overtime. However, workers argue that these figures are misleading, as many are performing the duties of multiple employees due to staffing shortages.

Union's Claims and Corporate Response

Union representatives have filed unfair labor practice charges against PECO with the National Labor Relations Board, alleging that the company has not engaged in good faith bargaining. Stuart Davidson, lead negotiator for IBEW 614, criticized PECO for failing to provide necessary information during negotiations, stating, “This is not a company that respects its employees.” In response, LeVine claimed that the company's profits, which rose nearly 50% in 2025, were largely due to weather-related factors and insisted that PECO is working towards a fair contract.

Broader Context and Customer Impact

The backdrop to these negotiations includes PECO's recent requests for rate increases from the Pennsylvania Public Utility Commission, which could raise electricity rates by approximately 12.5% and natural gas rates by about 11.4% for customers. Union members have pointed out the disconnect between rising corporate profits and their stagnant wages, with technician Charlie Termine questioning whether the company values their contributions.

Criticism and Worker Sentiment

Workers have expressed frustration over their treatment and compensation, with lineman Jimmy McGill highlighting the demanding nature of their work, which often requires them to be on call at all hours. “I’ve missed countless family events in my 30-plus years,” he noted. The sentiment among union members is that despite the company's profitability, their compensation and benefits do not reflect the essential services they provide.

Official Statements and Future Outlook

LeVine maintained that PECO has made a fair offer and is prepared for a potential strike, assuring that customer service would not be interrupted. As negotiations continue, the union has not yet decided on a strike, but the option remains on the table if progress is not made. The situation remains fluid, with updates expected as talks progress.

Verbatim Quotes

  • “The way things are going right now, we haven’t moved on anything of substance,” — Larry Anastasi, President, IBEW Local 614
  • “This is not a company that respects its employees,” — Stuart Davidson, Lead Negotiator, IBEW Local 614
  • “It’s not a matter of whether they can give us a livable wage, a pension and respectable health care, it’s are they willing to?” — Charlie Termine, Technician, IBEW Local 614
  • “Our customers will not see an interruption in service,” — Nicole LeVine, Senior Vice President, PECO