Joint Underground Construction Group Layoffs

Friday, January 15, 2010

On December 10, 2009, Consumers Energy announced its intention to lay off 34 union members of the Joint Underground Construction Group.  The layoffs were effective December 30, 2009.

The Joint Underground Construction Group was created in 2007 through a pilot agreement between the MSUWC and Consumers Energy.  The agreement runs through the remainder of the current Working Agreement, and its purpose was to return work to the members of the MSUWC that had been previously contracted out by Consumers Energy. 

From the date of its inception, the group has proven extremely successful, displacing nearly all joint underground new-business contractors.  Under the agreement, Consumers Energy had the ability to lay off members of the group during periods with little new construction; however, prior to the December 2009 announcement, no layoffs had occurred.

Consumers Energy cited seasonal slowing of new-business construction and the downturn in Michigan's economy as causes for the layoffs.  They stated that if business picked up, the group could called back prior to the expiration of the agreement.  The MSUWC believes the group can continue to play a key role in the Union's ability to retain this work long-term.  The group's future will be a subject of the upcoming OM&C negotiations with Consumers Energy.

The MSUWC wishes its fellow union members of the Underground Construction Group the best and hopes that as the weather improves and the workload increases, there will be an opportunity to recall the group.

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