Workers at two large Puerto Rico public corporations voted to strike.
On Tuesday members of the Independent Authentic Union of the Puerto Rico Aqueduct and Sewer Authority, and the Union of Electrical Industry and Irrigation Workers of the Puerto Rico Electric Power Authority voted to authorize their leadership to call strikes. The two unions are the principal unions in both public corporations.
The unions have not said when they will go on strike. The president of the latter union, which is known as UTIER by its Spanish initials, said the union would be "surprising" and "creative" in its actions.
If the unions go on strike, the public corporations' managers are prepared to operate the facilities and keep water and electrical service running, a source close to Puerto Rico's governor said. The managers have successfully operated the system in recent days as the union workers have walked off the job in temporary work stoppages.
The leaders of the unions have said they are protesting the fiscal stabilization bill that the governor signed into law on Tuesday. They have said that the governor is using the commonwealth's fiscal problems as a cover for a long-lasting attack on government workers.
The governor has included language in the fiscal stabilization law that the belt-tightening measures are to only last for the few years while the stabilization law is in effect, the source near the governor said.
On June 7 Puerto Rico's government announced a deal with most of its unions to allow changes to the labor agreements to reflect the island's fiscal situation. On Tuesday the unions for the firefighters and for police office employees joined the pact.
If the government were to agree to the demands of the public corporation unions, it would not be able to create a balanced budget, the source near the governor said. The governor's staff is confident that its continuing dialogue with the public corporation union leaders will prevail, she said.
PREPA has $8.8 billion in debt outstanding. It is rated Ba2 by Moody's Investors Service, BB by Fitch Ratings, and BBB-minus by Standard & Poor's.
PRASA has $5 billion in debt outstanding. It is rated Ba2 by Moody's Investors Service, BB-plus by Fitch Ratings, and BB-plus by Standard & Poor's.
