USW Workers at 10 Alcoa Plants Ratify Five Year Agreement
On June 6, 2014, the United Steelworkers and Alcoa, a lightweight metals engineers and manufacturing company, announced the ratification of a five year agreement covering 6,100 employees. The tentative agreement was reached May 15 and the agreement will retroactively take effect May 16 and continue until May 15, 2019.
The agreement provides wage increases, a $1,000 bonus, pension improvements and an increase in the performance payout pool. Few health care plan changes were made and no increases in health care-related costs were adopted.
In a statement, USW International Vice President Tom Conway, who led the negotiations, said the “agreement includes significant wage increases in each year of the contract which won’t be eroded by rising health care premiums or unexpected medical expenses.”
All employees will receive 2.5 percent annual increases in the first three years and 3.0 percent increases in years four and five.
Three crafts classifications, Electrician, General Mechanic and Machinist, will receive an hourly rate increase by 8 job grades “due to labor market conditions and the ability to recruit,” according to the agreement summary provided to eligible voters. Accelerated apprentice programs will also be implemented for the three classifications. Further, the three positions will see an immediate wage improvement of about $2.00 per hour.
Effective January 2015, Alcoa’s Performance Pay pool will increase from 20 percent to 22 percent. The agreement also allows employees to contribute up to 50 percent of their performance pay into their retirement accounts. According to the company’s highlights of the agreement, “annual reset of performance measure to ensure alignment with business goals,” will be implemented.
Regarding health care, the new contract makes no changes to employee contribution rates, deductibles, copays or coinsurance. The agreement does include a new benefit ranging from $4,800 to $48,000 for employees who suffer severe burns. The benefit is effective Jan. 1, 2015.
The full summary is provided on the USW website here.
Connecticut Alters Paid Sick Leave Law for 2015
On June 6, 2014 Connecticut Gov. Dannel P. Malloy (D) signed to change the state paid sick leave law.
Under the law enacted in July 2011, employers with 50 or more employees employed during any quarter of the prior year are required to provide workers with one hour of paid sick leave for every 40 hours worked.
Under the amended law, the requirement is applicable to employers with 50 or more employees on payroll for the week containing October 1.
In addition, the law specifies employers may not fire, dismiss or transfer any employee in order to remain under the 50 employee threshold.
The amended law also now allows employees to start the benefit year on any date rather than using a calendar year.
The changes will take effect January 1, 2015.
Teamsters Request Court to End Federal Oversight of Union
On June 4, 2014, the International Brotherhood of Teamsters (IBT) sent a letter to Judge Loretta A. Preska of the U.S. District Court for the Southern District of New York. The letter requested to eliminate governmental oversight of the union and claiming, “The enforcement of the Consent Degree can no longer be justified.”
The Decree was established in 1989 in response to complaints of “mob-controlled union leadership, violence against union dissidents and defrauding of union members.” The IBT claims the union has undergone a “striking transformation” since that time and the three charges in the original complaint have been eradicated. The IBT added, “Any present-day misconduct is limited to sporadic transgressions like those found in many large organizations.”
The U.S. Attorney’s Office for the Southern District of New York filed a letter brief in opposition to the Teamster’s request. In that letter, Assistant U.S. Attorney Tara La Morte claimed that “corrupt and undemocratic practices persist at all levels of the union.”
A few days after the IBT’s letter was sent, attorney Barbara Harvey sent the judge an opposition letter on behalf of the group, Teamsters for a Democratic Union (TDU). The TDU is a group known for criticizing Teamster leadership, particularly the union’s president, James P. Hoffa.
In its letter, the TDU requested to be a part of the proceedings as an amicus party if the matter is heard on the motion that IBT intends to file. The TDU claims the IBT should continue to operate under supervision per the Decree and that, “There is no basis for a reasonable expectation that this [IBT] administration will start doing what needs to be done to maintain democratic governance.”
USW Members Ratify Master Agreements with International Paper Covering 8,800 Workers at 71 Job Sites
United Steelworkers and a few other unions ratified two, six-year master agreements on June 2, 2014 with the International Paper Company. The converter master agreement covers 2,800 employees and the mill master agreement covers 6,000 employees.
According to Bloomberg, in the union’s summary of the converter agreement, the union called the package – worth $265M for the members - “historic,” and with “long-lasting and far reaching implications.”
Both agreements provide wage increases each year, minor changes to health care plans and improvements in pension plans.
Other unions that are a party to the agreements include the International Association of Machinists, International Brotherhood of Electrical Workers, International Brotherhood of Boilermakers, United Association of Plumbers and Pipefitters, International Union of Operating Engineers, Service Employees International Union and the International Union of Electronic Workers.
Under both master agreements, workers will receive increase of 2.5, 2.5, 2.25, 2.0, 2.0 and 2.0 percent increases, respectively, in each out-year of the contract.
The USW’s summary of the converter master agreement noted, “health care stability in terms of plan design and cost is especially important for converter members whose wages are lower than our mill counterparts.” The summary outlines the few changes made to the health care plans including an additional $1,000 company contribution on top of the regular company contribution ($500 for singles, and $1,000 for families) to the HRA in 2015. Employee contribution will remain at 20 percent and it was agreed if the plan renewal increases or decreases by more than 14 percent, the parties will come to an agreement to reduce the combined increase to 14 percent or less.
Regarding pension, the defined benefit multiplier increases for the converter plant workers from $34 per month per year of service to $39 over the duration of the contract. For Mill workers the multiplier will increase to $55.
The Master Bargaining Committee’s summary letter ended, “Because of these negotiations, everyone’s future is better.”