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For the first time in its 145-year history, PECO’s 1,600 unionized workers went on strike just after midnight Saturday after negotiations on a new labor agreement with the utility’s management collapsed.

In a statement, International Brotherhood of Electrical Workers Local 614, which represents linemen, gas odor responders and technicians, call center and other back-office employees, said the company’s “lack of seriousness over six months of bargaining has forced us to this point.”

PECO spokesperson Greg T. Smore said in a statement Saturday that the company was “extremely disappointed” that workers decided to strike, adding that management “presented a strong, market-competitive proposal that includes nearly a 20 percent wage increase over five years, along with significantly enhanced retirement and medical benefits that address the union’s long-standing priorities. As an essential employee during a heat wave, Joseph Vassallo would be in protective gear, working a 16-hour workday as a linesman, making sure the power stays on.

But PECO workers were not convinced and began picketing outside the company’s headquarters Saturday at 23rd and Market streets as the strike deadline passed.

Negotiations are ongoing between the two sides as the region broils under a heat wave and workers continue to picket at various PECO facilities.

Workers express concerns about the future

As an essential employee during a heat wave, Joseph Vassallo would be in protective gear, working a 16-hour workday as a linesman, making sure the power stays on.

On Saturday morning, he was walking the picket line in a t-shirt and shorts, saying he wants to ensure that PECO employees have a future with the company.

“It’s hard for me to sell the younger guys on what they’re going to be getting coming in here when I don’t even know myself,” Vassallo said. “It’s a mixture of guys like me in the middle versus the guys in the beginning that we want to make sure that this stays beneficial for them and their families going forward.”

Joy Rodriguez, a specialized consultant for PECO’s customer care center, said she wants to prevent the company from outsourcing jobs.

“We want to continue to bring the jobs to the city of Philadelphia and the surrounding counties that we service,” she said.

Union says PECO has been ‘unserious’

PECO provides electricity to 1.7 million ratepayers in the city of Philadelphia and the surrounding Pennsylvania suburbs. It also serves about 550,000 suburban customers with natural gas.

The contract between IBEW and PECO expired in March, but negotiations began in January.

The union said it wants industry-standard wages for its members. Union spokesperson Melissa McCleery said PECO employees earn about 30% less than their counterparts at nearby comparable companies. In addition, the union is demanding pension and health benefits for about 600 workers who were hired after 2021. They also want retirement benefits based on gross payroll rather than the current base-salary structure, which does not account for overtime.

McCleery said management has “been unserious through the entire process.”

“PECO did not make any substantial changes to their offers until Wednesday of this week,” she said. “We’ve been really clear about where our priorities are.”

McCleery said money from the recent rate increase is not going to workers.

“There’s an enormous amount of waste and greed at PECO that’s a real problem,” she said.

PECO made $814 million in 2025, and saw an increase in net income through the first quarter of 2026. Calvin Butler, the CEO of PECO’s parent company, Exelon, received $24.6 million, including stocks, in total compensation last year.