PECO Workers Stage Brief Strike in 100°F Heat, Win Pensions Restored for 600 Hires

Workers at PECO — the utility serving the Philadelphia region and Pennsylvania's largest electric and natural gas company — staged a rare, brief walkout during a stretch of 100-degree heat, violent storms and thousands of outages. Within three days, the International Brotherhood of Electrical Workers (IBEW) Local 614 reached a tentative five-year agreement that restored defined-benefit pensions for roughly 600 employees hired after 2021.

The stoppage came amid rising utility bills and sharply increased company profits, and it marked the first time Local 614 had walked off the job since its founding in 2004. About 1,500 members left their posts just after midnight on July 4; by late July 6 the union and PECO had negotiated a tentative deal.

Timeline and Stakes

The timing amplified pressure on both sides: Philadelphia was in the middle of July Fourth celebrations, temperatures hit 100°F, and PECO reported more than 57,000 customers lost power that night, according to Labor Notes. The walkout drew attention because it unfolded as customers were paying higher rates while the company reported rising earnings.

What the Tentative Agreement Includes

• Pensions Restored: The deal returns defined-benefit pensions for about 600 workers who had been placed on 401(k) plans after 2021 and restores a benefit structure for future hires.
• Wage Increases: Pay is tiered by role: call center staff are slated to receive 3% annual increases; field workers will receive 4% raises for each of the first four years and 4.5% in year five.
• Retiree Medical Coverage: The agreement includes medical coverage in retirement.
• Work Protections and Premiums: The contract secures upgrade pay for duties performed outside normal classifications and requires call center employees to receive at least 24 hours' notice before mandatory overtime.

Context: Rates and Profits

Labor Notes reported that PECO posted $814 million in earnings — nearly 50% higher than a year earlier — while customers faced higher bills: electric rates rose about 10% and gas rates about 12.5%. The contrast between growing profits and rising household energy costs helped fuel public and labor scrutiny.

Solidarity and Impact

Local 614 said the action drew broad solidarity: electrical workers from other IBEW locals across several states refused to cross picket lines, and community groups and supporters across Philadelphia rallied behind the union. That support helped amplify the union's leverage during negotiations.

“I think for the most part the members were ready. They were fed up,” said Joe Vassallo, a power line worker and part-time business agent for IBEW Local 614, describing the mood among members.

Jana Korn, chief of staff at the Philadelphia Council AFL-CIO, framed the dispute as part of wider public frustration: “As PECO consumers, every working person in Philadelphia bears the burden of skyrocketing energy prices while PECO/Exelon's profits continue to grow. We are clear that all of our fights are interconnected.”

For Local 614, the brief strike appears to have delivered more than a single contract win: members say it strengthened solidarity and bargaining power going forward. The agreement remains tentative pending ratification by union members.