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PECO workers strike through 100-degree heat, storms, and outages, then win pensions back

The company made $814 million, nearly 50% more than a year earlier.

A megaphone.

Photo Credit: iStock

Workers at PECO, the electric company for the Philadelphia region and Pennsylvania's largest electric and natural gas utility, walked off the job during a punishing stretch of 100-degree heat, violent storms, and tens of thousands of outages — and within three days, they had secured the return of pensions for hundreds of newer employees.

The brief strike unfolded amid rising utility bills, growing corporate profits, and frontline workers being asked to accept less.

What happened?

The union had never staged a walkout since Local 614 was founded in 2004. That changed just after midnight on July 4, when about 1,500 members of the International Brotherhood of Electrical Workers Local 614 left the job; by late July 6, Labor Notes reported, they had reached a tentative agreement.

The timing raised the stakes. Philadelphia was deep into its July Fourth celebrations, temperatures hit 100 degrees, and PECO said more than 57,000 customers lost power that night, according to Labor Notes.

Joe Vassallo, a power line worker and part-time business agent for IBEW Local 614, described the mood among workers to Labor Notes, saying, "I think for the most part the members were ready. They were fed up."

Key parts of the tentative five-year contract include annual raises, medical coverage in retirement, and the return of defined-benefit pensions for around 600 workers hired after 2021 who had been shifted onto 401(k)s.

Why does it matter?

Utility workers were fighting for retirement security while facing the same rising costs many households across the region are struggling with.

The dispute came after PECO raised rates and sharply increased profits. Labor Notes reported that the company made $814 million, nearly 50% more than a year earlier, while electric customers paid 10% more and gas customers paid 12.5% more. 

As communities pay more for power during dangerous heat and worsening storms, utilities are under pressure to protect both residents and the workers who keep the system operating.

What's being done?

Under the tentative agreement, pay increases would vary by job. According to Labor Notes, call center workers would receive 3% annually, while field workers are slated for 4% raises in each of the first four years and 4.5% in year five.

Workers also secured upgrade pay for duties outside their normal roles, along with a requirement that call center staff receive 24 hours' notice before being scheduled for mandatory overtime. It also restores a defined-benefit pension for all members, including future hires.

Local 614 said the strike drew solidarity beyond PECO: electrical workers from other locals across several states refused to cross the picket line, while supporters from across Philadelphia joined in backing the workers.

Jana Korn, chief of staff at the Philadelphia Council AFL-CIO, connected the labor fight to broader public frustrations, saying, "As PECO consumers, every working person in Philadelphia bears the burden of skyrocketing energy prices while PECO/Exelon's profits continue to grow." Korn added, "We are clear that all of our fights are interconnected."

And for Local 614, the strike appeared to leave behind something larger than a single contract victory. "We used to feel like we were on an island. We don't feel that way anymore."

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