BNA’s 28th Annual Employer Bargaining Objectives Shows Slight Improvement in Employer Outlook
This month, BNA published its 28th annual Employer Bargaining Objectives. The publication featured the results of surveyed employers whose contracts expire in 2013. The survey examined employers’ bargaining goals and expectations.
According to BNA’s blog, more employers expect to make pay concessions (64 percent) than to seek concessions (37 percent). In 2012, the results were reversed. More employers planned to seek pay concessions rather than make concessions themselves.
Additionally, 20 percent of employers anticipate first-year wage increases of three or more percent. In 2012, only 11 percent of employers anticipated such wage increases. The majority of employers, nearly 90 percent, will not bargain for lump-sum payments.
- Health Care and Other Benefits.
Fifty-eight (58) percent of employers plan on seeking insurance and health care benefit concessions. While health care coverage is generally high, there has been a modest decline in coverage over the past year.
Nearly 50 percent of responders plan to propose new or expanded health care cost-sharing provisions. Few, if any, will consider dropping or relaxing provisions on copay, deductibles or premium contributions.
Although relatively unchanged in the past few years, the number of contracts with annual leave provisions is substantially down from around 2001. Currently, about 74 percent of expiring contracts contain annual leave provisions. In 2001, that proportion was 93 percent.
Employers continue to show little willingness to improve pension benefits. Only 12 percent said they would consider it.
Greyhound Employees Began Working Under New Deal in April
Effective at the beginning of April, Greyhound drivers and mechanics started working under a new labor contract. According to Bloomberg’s Daily Labor Report, the contract is Greyhound’s first at providing pay to bus drivers for hours not driving. The pay includes pre- and post-trip work, stops exceeding 30 minutes and layover time.
Drivers will receive wage increases during each year of the contract ranging from 16 cents to 25 cents. According to Amalgamated Transit Union’s (ATU) announcement, the new contract adds $55 million into wages and benefits. Monetary incentives will also be provided for employees to work in urban areas.
According to ATU, the company is hiring about 130 employees from former subsidiary companies, Americanos and Crucero. The union anticipates at least 30 of those employees will be hired in the San Diego area. Driver candidates will need to pass an English exam. Conversely, veteran Greyhound drivers will have to demonstrate some level of Spanish competency in order to operate “bilingual runs."
On the same day of the contract ratification, ATU announced the company’s new wellness program, “Healthy Hound.” Under the new program, employees will be incentivized to participate in health-improving activities.
Participation in one of the following three activities will allow employees to be eligible for the lowest medical premiums for 2014. Employees who do not participate in any of the three activities will pay a $240 surcharge in addition to next year’s premiums.
These three activities include:
- Three phone calls with a Cigna Health Advocate to address a chronic medical condition;
- One routine annual wellness exam; or
- Submit an online Cigna Personal Health Assessment with current biometric information (height, weight, waist size, blood pressure, HDL cholesterol).
The union’s announcement on the "Healthy Hound" program emphasizes that “early awareness is the best defense against diseases gaining irreversible footholds.”
OSHA Approves of Third Party Representatives for Employees of Nonunion Workplaces During Investigations
At the end of March, OSHA clarified that employees of nonunion workplaces may be represented by anyone – not just other employees of the workplace – authorized by the site’s workers. The information was published in a letter written by Deputy Assistant OSHA Secretary, Richard Fairfax. Fairfax announced his expected retirement date of May 4, 2013, several months prior.
Fairfax’s letter was in response to a request from Steve Sallman, a health and safety specialist with the United Steelworkers (USW). The letter itself poses Sallman’s inquiry as two separate questions:
1.) “May one or more workers designate a person who is affiliated with a union without a collective bargaining agreement at their workplace or with a community organization to act as their "personal representative" for OSH Act purposes?”
2.) “May workers at a worksite without a collective bargaining agreement designate a person affiliated with a union or a community organization to act on their behalf as a walkaround representative?”
Fairfax answered “yes” to both questions, followed by brief explanations.
In addition, Fairfax referenced a previous OSHA letter from 2003, the Racic letter. The Racic letter states that a “non employee who files a complaint does not necessarily have a right to participant in an inspection arising out of that complaint.” According to Fairfax, the Racic letter has engendered confusion and is being withdrawn by OSHA.
Both BNA’s Daily Labor Report, as well as an article by Quarles & Brady LLP suggests that the Fairfax letter may be interpreted as allowing unions to use this OSHA clarification as a tool for union organizing.
The actual OSHA standard, 29 C.F.R §1903.8(c) mentions an “industrial hygienist” and “safety engineer” as examples of possible third party representatives. Fairfax’s letter, in contrast, specifically allows a person affiliated with a union to be designated as an employee’s third party representative in nonunion workplaces.
Working America Launches “50 in 5” Plan to Expand to All 50 States within Five Years
Working America, an affiliate of AFL-CIO for nonunion members, announced its plan to increase unionization through massive expansion. The organization is currently in 12 states, but hopes to be in all 50 states by 2018. AFL-CIO made the announcement at its 10th anniversary celebration on April 18, 2013.
According to Working America’s website, the organization already has over 3 million members. Currently, the group uses door-to-door recruiting as a tactic to spread its message of fighting for common interests such as good jobs, education, retirement security and corporate accountability.
Working America plans to continue its door-to-door strategy, but revealed that it plans to implement different methods as well. One method will involve using a new website, fixmyjob.com, set to launch in May. The site will connect workers and provide information on basic job rights as well as access to other information about organizing workforces. According to BNA, the Executive Director of Working America, Karen Nussbaum, has described the website as a “WebMD for workers.”
Over 600 Unite Here Members Agree on Five-Year Contract with Chicago Hotels
Unite Here agreed on a settlement with Hilton Hotels, which covers workers at the Drake, Palmer House Hilton, Chicago Hilton and Towers, and the Hilton Chicago O’Hare with economic and job security improvements.
Chicago housekeepers currently make $16.40 per hour (compared to $8.83 in 2002) and will earn more with each year of the contract. Over the duration of the contract, the economic increases will be $4.81, according to the union.
Workers will also receive low-cost, high-quality health care which is free for individuals and $30 per month for families.
In contrast to the Unite Here workers at Hilton, employees of other Chicago area hotels have not seen successful bargaining in recent years. According to Unite Here, since Hyatt's contracts expired in 2009, workers have taken serious actions such as strikes and boycotting campaigns.
Unite Here Local 1 President Henry Tamrin says, “This is a positive step for the whole industry in which Hilton is leading.”
BLS Data Reveals Minor Changes from 2010
The U.S. Bureau of Labor Statistics (BLS) recently revised the 2011 Census of Fatal Occupational Injuries (CFOI). The findings reveal while the total number of fatal work injuries in 2011 was three more (4,693) than in 2010 (4,690), the fatality rate for 2011 was slightly lower. In 2011 there were 3.5 fatal injuries per 100,000 full-time equivalent workers. In 2010, the rate was 3.6.
The total number of fatalities for 2010 and 2011, respectively, were 4,690 and 4,693. The final 2011 tally was the third lowest since the Census began in 1992.
Below are additional highlights of the BLS data:
- The fatality rate for transportation and warehousing increased from 13.7 to 15.3.
- In contrast, the fatality rates for construction, mining, agriculture, forestry, fishing and hunting all decreased.
- 41 percent of the fatalities in 2011 resulted from transportation accidents.