We have an excellent relationship with our labor unions. Labor unions have worked with AEP leadership not only on the financial challenges we have faced during the economic downturn, but also in major legislative, regulatory and work force-related initiatives.

The restructuring in 2010 didn’t change the demographics of our represented work force; approximately 28 percent of our employees are represented by unions. We worked closely with union leaders during our restructuring to ensure they understood what we were doing and why we had to do it. They were collaborative and supportive throughout the process. The company and labor frequently work together on projects that support our communities, such as United Way and Operation Feed in Central Ohio.
 
During 2010, we successfully negotiated four collective bargaining agreements and 17 wage reopeners with the unions representing our employees. One of the 17 wage reopeners addressed wages for the 35 locals covered by the International Brotherhood of Electrical Workers’ master agreement.

Diversity of the work force in 2010 was affected very little by last year’s severance program. Approximately one-third of our employees are minorities or females. In 2010 as in past years, we set diversity targets for females and minorities for management, professional and front-line positions. Placement rates in three of the six job categories exceeded target: females in the management and professional categories and minorities in front-line posts. We made progress in our placement rate for minorities in management and professional positions but were unable to reach our targets, largely due to the work force reorganization.

Gaining greater diversity in some job categories remains a challenge, especially at a time when very little hiring is occurring. However, through partnerships and involvement with organizations such as Hard Hatted Women and the Center for Energy Workforce Development (CEWD), we continue to try to tackle this issue. Hard Hatted Women helps prepare females for trade and technical careers, and CEWD promotes energy-related careers to young people nationwide.

AEP is committed to providing opportunities for small, minority-owned and women-owned businesses. We view Supplier Diversity as a business imperative, and we’re focused on continuous improvement as a way to maximize business effectiveness and operational efficiency. Adoption of a new supplier registration tool in 2010 and increased educational outreach efforts within the buying community will help us to identify new opportunities for diverse suppliers.