UNION RECOMMENDS REJECT

Transcription

1 UNION RECOMMENDS REJECT Summary of New Proposed Contract Between IAM District 751, Local 86 & Triumph Composite Systems highlighted, visit YOUR NEGOTIATORS RECOMMEND: REJECT & STRIKE Triumph presented your negotiating team with their last, best and final offer on Wednesday, May 8, You identified wages, COLA, pension, and holding down health care costs as top issues. The Company REFUSED to move in most of these areas. In fact, Triumph has demanded take-aways in pension, health care, and wages, and wants to create a two-tier wage and benefit system to dilute your strength for the future. Your negotiating committee recommends you REJECT this proposal and vote YES TO STRIKE. Triumph s last, best and final offer demands that you agree to the corporate practices that are destroying middle class America. It is a corporate strategy to break the workers who have built this Company. While the top three executives took increases in 2012 that would have provided a 3 percent General Wage Increase for all 500 members in Spokane, they are insisting you take less MUCH LESS. From the start, the Union has proposed a fair contract for ALL, but Triumph refused to address your issues. Three years ago, Triumph negotiators came to the table, were honest and open about where their business was, and we worked together to secure a contract that was good for both sides. Not so this time. Beyond just the insulting take-away and sell out proposals, Triumph has failed to provide information essential to bargaining and has otherwise failed to bargain in good faith. The Company s bad faith conduct is an unfair labor practice under Federal law, and the Union is filing charges to that effect. Another reason to support a strike, is to protest the company s failure to bargain in good faith. There is no excuse for Triumph to demand these take-aways and expect you to sell out not just yourselves, but your children, your co-workers, and the next generation. The fact that Triumph s profits have doubled since we last bargained a contract makes it even more insulting. Triumph believes you are weak and will take whatever bad proposal they put out. They don t believe you stand up for yourselves. Don t allow them to divide the workforce and pit member against member, and parents against children. If you allow Triumph to do this when profits are increasing, what CUTS will Triumph propose during a downturn or when profits have not doubled? Stand up to this tactic and just say NO to the contract and YES to strike. MEDICAL: TAKE-AWAY: Huge take-aways by shifting more costs to you. Deductibles more than doubled. Your out-of-pocket costs nearly doubled to $3,500 for individual/$7,000 for family per year. Major medical reduced from 90% to 85% and then to 80% in 2016 (coverage at this level could trigger bankruptcy if you end up in the hospital with major surgery). PRESCRIPTION COVERAGE: TAKE-AWAY - Copays more than doubled on all prescriptions. PENSION: TAKE-AWAY & SELL OUT No IAM Pension for new hires (two-tier system). Current employees see an increase of 5 an hour in (k) MATCH: TAKE-AWAY & SELL OUT - Current employees no longer get 401(k) match. Future hires will receive 401(k) match, but no pension. WAGES: SELL OUT After 3 years without a wage increase, ONLY those at the maximum rate today will receive a 2% General Wage Increase in No other wage increases for anyone throughout the contract.

2 MAXIMUM RATE: TAKE-AWAY & SELL OUT Two-tier wage system proposed. For those not currently at the maximum rate but hired before 5/11/2006, their maximum rate will increase by 2% in 2013, but they will only achieve that through normal progression, not with a General Wage Increase. For those hired after 5/11/2006, the maximum rate will be reduced by 12.5 percent - creating a two-tier wage system. LUMP SUM: With all these take-aways and increased costs on health care, loss of 401(k) match, and loss of pension for future hires, Triumph proposes only $200 more in lump sums than the $8,300 in lump sums provided in your current contract. Keep in mind the $8,300 did not come with dramatic take-aways and sellouts creating a two-tier wage and benefit system. The proposed lump sums will not cover the increased costs in health care during the contract - meaning less money in your pocket. As your negotiating team, we cannot, nor would we even consider recommending a contract with so many take-aways and sell outs. We don t make our recommendations lightly, nor should we, as these recommendations have an effect on the outcome. We understand to withhold one s labor is a sacrifice, but as one member put it best, I will sacrifice now to have a better future later. Why should they demand you take less when those at the top are taking more? Do the right thing and stand together. Solidarity is all about sticking together and supporting each other. Together, we will get a fair contract for ALL. Tom Wroblewski Mark B. Johnson Steve Warren Ken Howard Jerry Womble Following is a brief summary of the offer. Complete contract available on the website at WAGES Triumph is proposing a two-tier wage system. Table 1 will be applicable to employees hired on or before 05/11/2006 and have 7 years seniority per Article 14. The maximum rates of Table 1 will increase 2% on 05/11/2013 from current maximum rates. Table 2 will be applicable to employees with seniority dates after 05/11/2006. rates will be reduced 12.5% from current maximum rates. There will be no reduction in the hourly wage of any IAM employee in their current job classification. Tables 1 and 2 are on page 3. LUMP SUMS Keep in mind this is only $200 more than lump sums in current contract, which did not contain all the take-aways $5,000; $2,000; $1,500 SENIORITY PROGRESSION Fourteen (14) SPI steps accepted with new Base Rates; results in max rate at seven (7) years (HOWEVER, the maximum rate would be 12.5 percent less than today). SHIFT DIFFERENTIALS: 3rd shift 10 cent increase COST OF LIVING ADJUSTMENT (COLA) - SAME HEALTH CARE Dramatic cost shifting with deductibles doubling, out-of-pocket limits increased to $3,500/$7,000. See other changes on page 4 PENSION ELIMINATE pension for new hires (SELL OUT) Pension contributions for employees on payroll effective 05/11/2013 increase 5 over the life of the contract. 401(K) ELIMINATE 401(k) match for employees on payroll effective 05/11/2013. TAKE-AWAY New hires will have new 401(k) formula -- see page 3. SELL OUT highlighted, visit

3 Economic Issues Lump Sum Bonuses each year Lump sum bonus of $5,000 paid as soon as possible after ratification. Lump sum bonus of $2, Lump sum bonus of $1, Lump sums this contract are only $200 more than current contract, which did not contain take-aways and sell outs. Seniority Progression Increases - Fourteen (14) SPI steps accepted with new Base Rates; result in max rate at seven (7) years (HOWEVER, the maximum rate would be 12.5 percent less than today). Pension - TAKE-AWAY & SELL OUT IAM National Pension contributions, increase 5 cents in 2014 to $1.75 per compensable hour. This is only for employees on payroll effective 05/11/2013. ELIMINATE IAM National Pension benefits for new hires hired in after 05/11/ (k) Benefits - TAKE-AWAY ELIMINATE 401(k) match for current employees. New hires will have a new 401(k) formula - For employees hired after 05/11/2013: 100% on the first 2% employee contribution and 40% on the remaining employee contribution up to a 6% max (corporate standard) COLA - No change Formula remains the same. 100% inflation protection based on six month average by revising to pay 1 for each.075% change in the average BLS Consumer Price Index (previously $.008 for each.075%). COLA will be paid out twice yearly in a lump sum and will be cumulative based on new peg point. Gain Sharing - No change WAGES/MAXIMUM RATES two-tier wage WAGES: After 3 years without a wage increase, ONLY those at the maximum rate today will receive a 2% General Wage Increase in No other wage increases for anyone else throughout the contract. MAXIMUM RATE: TAKEAWAY & SELL OUT Two-tier wage system proposed. For those not currently at the maximum rate but hired before 5/11/2006, their target maximum will increase by 2% in 2013, but they will only achieve that through normal progression, not with a General Wage Increase. For those hired after 5/11/2006, the maximum rate will be reduced by 12.5 percent - creating a two-tier wage system. JOB CLASSIFICATION (TABLE 1) Minimum Rate of Pay 5/13/ % 5/12/2014 5/11/2015 Team Lead $13.36 $27.48 $27.48 $27.48 Production Mechanic A $13.36 $27.48 $27.48 $27.48 Production Mechanic B $11.00 $24.78 $24.78 $24.78 Maintenance Mechanic A $15.91 $30.19 $30.19 $30.19 Maintenance Mechanic B $14.21 $28.42 $28.42 $28.42 Inspection Mechanic A $14.21 $28.42 $28.42 $28.42 Inspection Mechanic B $12.51 $26.59 $26.59 $26.59 Tooling Mechanic A $15.21 $29.44 $29.44 $29.44 Tooling Mechanic B $13.51 $27.61 $27.61 $27.61 Development Mechanic A $16.91 $31.31 $31.31 $31.31 Development Mechanic B $15.21 $29.55 $29.55 $29.55 JOB CLASSIFICATION (TABLE 2) Minimum Rate of Pay 5/13/ % 5/12/2014 5/11/2015 Team Lead $13.36 $23.57 $23.57 $23.57 Production Mechanic A $13.36 $23.57 $23.57 $23.57 Production Mechanic B $11.00 $21.25 $21.25 $21.25 Maintenance Mechanic A $15.91 $25.89 $25.89 $25.89 Maintenance Mechanic B $14.21 $24.38 $24.38 $24.38 Inspection Mechanic A $14.21 $24.38 $24.38 $24.38 Inspection Mechanic B $12.51 $22.80 $22.80 $22.80 Tooling Mechanic A $15.21 $25.25 $25.25 $25.25 Tooling Mechanic B $13.51 $23.67 $23.67 $23.67 Development Mechanic A $16.91 $26.85 $26.85 $26.85 Development Mechanic B $15.21 $25.34 $25.34 $25.34

4 Health Care/Dental/Vision Medical and Dental will go to 85%/15% contribution rate beginning year 2014 through year Contribution rates will go to 80%/20% in year Year-over-year premium increases cannot exceed 8% and are not cumulative. (See medical attachment for details) Wellness Credits - The Company will fund a Health Reimbursement Account (HRA) for employees who are enrolled in the PPO plan. Physical Exam - $200 for employee; $200 for spouse (spouse must participate in medical plan). Must provide evidence of a physical exam between 1/1/12-11/1/13 to the Company s wellness vendor for 2014 and 2015 credits. Physicals are only required every two years. Biometrics - $100 for employee; $100 for spouse (spouse must participate in medical plan). Must provide biometric numbers taken in 2013 to Company s wellness vendor by 11/1/13 for 2014 credit. Requirements are on an annual basis. Health Questionnaire - $50 for employee; $50 for spouse (spouse must participate in medical plan). Must complete questionnaire available on Company s wellness vendor s website by 11/1/13 for 2014 credit. Requirements are on annual basis. Non-smoker - $150 for employee; $150 for spouse (spouse must participate in medical plan). Must certify during annual enrollment that employee or spouse has been smoke-free for past six months for 2014 credit. Requirements are on an annual basis. Same holidays as current contract. Current Proposed Change from current Employee: $200 Employee: $500 MORE THAN Family: $400 Family: $1,000 DOUBLED Employee: $400 Employee: $4,000 INCREASED 10 TIMES Family: $800 Family: $8,000 HIGHER OR 1000% Employee: $2,000 Employee: $3,500 NEARLY DOUBLED Family: $4,000 Family: $7,000 Deductible preferred provider Deductible other providers Annual coinsurance limit preferred provider Annual co-insurance Employee: $4,000 Employee: $8,000 other Family: $8,000 Family: $16,000 providers Emergency Room Lab Work 90% 85% reducing to 80% in 2016 Hospital/Major Medical Prescription Drugs Vision coverage from $15.00 co-pay to $10.00 co-pay DOUBLED $50 copay $150 copay TRIPLED 90% 85% reducing to 80% in 2016 Generic: 100% after $5 copay 100% after $15 copay 100% after $30 copay Generic: 90% to a maximum of $20. 80% to a maximum of $50. 50% to a maximm of $100 Dental - benefits are subject to $2000 annual maximum per person for Type A, B and C Services (see medical attachment for details) Holidays COVERAGE REDUCED BY 10% DURING CONTRACT COVERAGE REDUCED BY 10% DURING CONTRACT Generic: Increased 150%. Increased approximately 160%. Increased 235%.

5 Job Classifications Team Lead NEW CLASSIFICATION Will be required to assign, assist and communicate instructions to other production mechanics and lead or train other production mechanics in daily work. Must demonstrate leadership, training and communications skills. Can be assigned to perform all Production Mechanic B functions. Promotional process for Team Lead will be subject to Section 22.1(b). Production Mechanic A* can be assigned to operate precision specialty machines such as three (3) and five (5) axis routers, plastic rotomold machine operator, pattern making, forklift operators who handle hazardous materials, shaper set-up, and water jet. Duration Three-year Agreement to expire May 11, VOTING THE PROPOSAL WHEN: Friday, May 10, 2013 WHERE: Spokane IAM Union Hall TIME: Polls will be open between 7:30 a.m. to 5 p.m. What Is on the Ballots There are two separate ballots: One to accept or reject the contract. One to authorize a strike Triumph Composite Systems, Inc. Strike Vote - May 10, 2013 I VOTE TO STRIKE Yes... No... Failure to obtain a two-thirds (2/3) YES in this section of the ballot will result in the acceptance and ratification of the Company s last and final offer. How Are the Ballots Counted? Triumph Composite Systems, Inc. CONTRACT VOTE May 10, 2013 I ACCEPT the Contract... I REJECT the Contract... Members who volunteer to count the ballots will tabulate them and validate the numbers. BALLOT 1: Do you wish to accept or reject the contract offer? Vote for one. BALLOT 2: IMPORTANT: The IAM Constitution requires two-thirds YES vote on this ballot to strike. Without two-thirds, even if a majority of the members reject the contract - the contract will be accepted by default. What Do the Results Mean? highlighted, visit If a majority of voting members vote to ACCEPT the contract, negotiations end and the contract is signed. If a majority of voting members vote to REJECT the contract, but LESS THAN TWO-THIRDS vote to strike, the contract is automatically accepted by default. The Union cannot call a strike. cwa #37082 afl-cio If a majority of voting members vote to REJECT the contract, and MORE THAN TWO-THIRDS vote to strike, a strike can be called at 12:01 a.m. May 11th.