The Jamestown Board of Public Utilities and its largest labor union have reached a contract extension agreement.

On Monday, BPU officials announced the BPU and International Brotherhood of Electrical Workers Local 459 which represents around 80 of 145 BPU employees have agreed to a one year contract extension. The extension will run from April 1 to March 31, 2016. BPU officials stated in a news release the extension is part of a provision in the prior labor agreement between the two parties. The provision adds a full year to the contract if neither party notifies the other of their intention to negotiate new terms. The deadline for negotiations was Jan. 30. Under the provision, all terms and conditions of the prior agreement are extended for one-year, including wages and benefits.

”I was surprised that the union decided not to give us notice to start negotiations,” stated Ross Snyder, BPU labor relations administrator. ”We made it clear during our last negotiation process that long-term savings proposals would be back on the table the next time we met on a new agreement. I never thought that the union would decide not to negotiate rather than discuss these issues.”

Union members accepted a wage freeze last year as an alternative to agreeing to proposals that would give the BPU long-term savings, including a bifurcated wage scale for new employees and changes to the health insurance plan.

”We have a great group of talented individuals and knowledgeable employees working in our water, wastewater collection, electric and customer service areas represented by the IBEW 459,” stated David Leathers, BPU general manager. ”It is difficult to believe that choosing not to negotiate is a good long-term strategy for these employees, however, we accept the decision.”

Leathers also stated, “We will continue to work very hard on properly recognizing and rewarding the excellent performance our employees provide on a daily basis, while recognizing our responsibility to contain our overall cost structure for our customers.”

By letter to the union, the BPU has invited them to open negotiations any time prior to Jan. 30, 2016, for the April 1, 2016, to March 31, 2017, contract year.

In June 2014, a public hearing was held so representatives from both the BPU and the IBEW 459 could discuss the contract that expired April 1 of 2014. According to a fact-finders report released in May 2014, both parties seem to be in agreement on a new contract except when it comes to bifurcated wages and benefits. The union and management agree that this is the sticking point in the negotiations. The union believes no new contract will be passed with an element of bifurcation, or multiple pay and benefit scales for employees. BPU management has stated some element of bifurcation is essential to a new contract.

Brendan Wolf, International Brotherhood of Electrical Workers Local 459 assistant business manager, said, during the public hearing, BPU officials have not given any reason why there should be a change in the wage scale and to benefits as part of a new contract agreement. Wolf said BPU officials have not given sufficient financial information as to why the city-owned utility is under any financial restraint.

Snyder, who spoke for the BPU during the public hearing, said the BPU staff has suggested not accepting the fact-finder’s recommendations when it comes to pay scale and benefits. The fact-finder had recommended that the proposed wage step change would be too wide to go from four to eight steps. The fact-finder also didn’t agree with the proposed changes to sick leave proposed by management.