European and US unions join forces and confront EON's hiring pratices

(Brussels 29 March, 2006) Energy Trade Unions from European and the USA today announced joint action to confront German energy giant EON. The Energy company has reneged on its pledge to hire unionized workers. It is this u-turn on hiring union workers that has provoked the European Federation of Public Service Unions (EPSU) and the International Brotherhood of Electrical Workers (IBEW) into action.

Eon intends to build a new power station for Louisville Gas and Electric, one of its US operations. The problem for the unions involved is that, in early 2005, EON management had agreed that union workers would be hired and yet for the Louisville project EON is refusing to honour this deal.

“We expect EON, as one of the European Union's largest companies, to practice quality industrial relations' policies ” declared EPSU Deputy General Secretary Jan Willem Goudriaan, “Indeed the company's own document E.ON's Company Culture (E.On One) and its traditions, explicitly pledges this”. The EPSU deputy continued that; “It would be an example of bad corporate social responsibility if EON continues on the ill-advised path of confrontation with US trade unions.”

Gary Klinglesmith, IBEW representative, supports this as an understanding was reached on hiring union labour in early 2005. “We feel betrayed by the local company management and appeal to German management to step in and assert its influence” he says. German companies are highly respected for their positive attitude towards trade unions in the US. He announced: “To allow this would set a dangerous precedent and if EON headquarters do not reverse this act of bad faith, IBEW and other construction unions will take action against Eon as of 3 April”

Erhard Ott, representative of German Trade Union Verdi on the Supervisory Board of Eon stated: “We will monitor closely what steps Eon will take to solve this and provide support to our US colleagues were we can.”

On Eon:
Eon is one of Europe's largest energy companies. It operates in different countries including Sweden, UK, Netherlands, Italy, Hungary, Bulgaria and Romania. It is involved in a take-over battle with Endesa, the Spanish energy giant.

For more information please contact:
For EPSU, Jan Willem Goudriaan + 32 2 2501080 or [email protected]
For IBEW, Gary Klinglesmith, + +1 (513) 821 5480 [email protected]
For Ver.di. Sven Bergelin + +49 (170) 923 96 58; [email protected]