Public Service of New Hampshire contracts for Generation and Utility were ratified on June 7, 2006, retroactive to June 4. The four-year contract will run until June 2010. Although the Bargaining Committee did not recommend contract ratification to our members and chose to remain neutral on the agreement, there were some attractive elements in the final package:

• Wage increases of 3.75% in 2006; 3.6% in 2007; 3.3% in 2008; and 3% in 2009.
• A $.45 wage adjustment across the board prior to the 2006 wage increase as a means to supplement the increased cost of medical insurance.
• Increased meal reimbursement.
• Increased FR clothing allowance.
• Increased per diem amounts for job site reporting.
• Increased annual footwear allowance.
• Maintained a better health insurance plan as our Core Plan and established caps for annual medical employee contributions.
• Company agreement to make up the difference in lost wages for shift workers who have weekend Military Reserve Duty for up to 120 hours per year.
• Job revaluations for General Stock Handler, Hydro Operator Mechanic, and Utility Contract Rubber Goods Tester.
• Establishment of a storm rate when working off the Northern Utilities system.

One source of disappointment—and the reason for the Bargaining Committee’s refusal to recommend ratification—is the introduction of a two-tiered retirement plan starting in 2007. Effective in January of next year, new employees will be enrolled in a plan called “K-Vantage.” This is essentially a cash balance plan with a 401(k) contribution element. Current PSNH employees will continue to benefit from the established pension system.