Delmarva Power reaches agreement to extend labor contracts

June 27, 2014

Delmarva Power has reached an agreement with the labor unions that represent its bargaining unit employees to extend the current collective bargaining agreements by three years.

The contracts with IBEW Local 1238, which represents employees in Delmarva Power’s New Castle region and North East region in Maryland, as well as employees' Martin Luther King Boulevard facility and Carneys Point, N.J. Call Center; and IBEW Local 1307, which represents employees in the bay region in Salisbury, Md., will now expire in 2020.

Delmarva Power’s parent company, Washington, D.C.-based Pepco Holdings Inc., announced a merger April 30 with Chicago-based Exelon Corp. That transaction is expected to be completed by the second or third quarter of 2015. Exelon has committed to no net involuntary merger-related job losses of PHI utility employees for at least two years after the merger and to honor all collective bargaining agreements.

Delmarva Power has also committed to hire a substantial number of bargaining unit employees after the merger is completed.

“These agreements will give security to our workforce, and we appreciate the collaboration with our union leadership achieve these extensions. This also enables us to focus on obtaining regulatory and other approvals of the Exelon-PHI transaction and our day-to-day business of serving our customers," said Gary Stockbridge, Delmarva Power region president.

Steve Newberry, business manager of Local 1238, said, “The contract extensions give assurance to the bargaining unit employees that they are valued. We are happy to extend our partnership and support the merger given the demonstration of commitment to our employees.”

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