Summary of Bath Iron Works Last, Best, & Final Offer to Bath Marine Draftsmen Association 4.5 Year Agreement September 18, 2017 to March 20, 2022
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1 Your Pay Rate Now 1 st GWI 2 nd GWI Summary of Bath Iron Works Last, Best, & Final Offer Wages 2.5% Potential for $6,000 in Lump Sum Cash Payments : $5,000 in Lump Sums (8.6% of avg base wage) $1,000 Ratification Bonus* (1.7% of avg base wage) Increased and expanded use of While Assigned Rates Retirement Program 401(k) match increases 18% in 2018 to dollar for dollar match up to 5% of ee s income Maintain $54 pension multiplier for current pension participants $1.00 $0.90 $0.80 $ % * Subject to successful contract ratification on or before Midnight, 9/17/17 401(k) Match Increase $ % $1.00 Now 2018 Insurance Flat payroll contributions for life of the contract Up to $1,600 in HSA funding from BIW in 2019 for PHAP plan- ongoing match thereafter Increase basic life insurance coverage 20% to $60,000 New option to buy $500K coverage in supplemental life Increase in weekly A&S benefit from $350 to $400 Return to Union dental plan option with retiree benefit Time Off Increased regular sick leave to 8 days Introduced 2 floating holidays for use anytime during year Introduced vacation sell back program Expanded access to banked sick leave and may now use for partial day FML Intermittent FML bonding now permitted Increased/expanded bereavement benefit Category Shift Start Workday Minimum Flexible Workweek BIW LBF +/- 1 hour +/- 1 hour (4x10 weeks) 8 hrs 4 x 10 Work Week 5 times/ year Notice Requirements & Duration of Schedule (See Slide 6 for Details) Shift schedules submitted week before Effective for one month Same start time each day Schedule exceptions for emergent events
2 Wages BMDA wages have grown 2.1% annually since 2009, meeting or beating state and national trends: CPI over the same period: 1.5% Maine wages over the same period: 2.0% National MFG trend over the same period: 2.1% BMDA received $6,500 in lumps sums since 2009 Ranged from $2,000 (3.5%) to $2,500 (4.25%) BIW Last, Best, & Final (LBF) Two GWIs at 2.5% and 3.0% for a total compounded absolute growth of 5.6% Opportunity for $6,000 (10.3% of average wage) in lump sum payments Two $2,500 lump sums $1,000 ratification bonus subject to membership ratification by 9/17/17 2
3 Healthcare Coverage Personal Health Account Plan (PHAP) Current payroll premium contributions remain flat for duration of new contract BIW will provide a one-time HSA seed of $500 ee-only/ $1000 family in 2019, with an ongoing match of $0.50 on the dollar up to $300 ee-only/ $600 family No change in plan design for duration of new contract Physician Open Access (POA) Current payroll premium contributions remain flat for duration of new contract Current copays for generic drugs and coinsurance remain the same throughout contract Other copays, deductibles and out-of-pocket maximums increase in 2019 and remain unchanged for the life of the contract Primary Care Physician Select (PCPS) Current payroll premium contributions remain flat for duration of new contract Introduction of deductible: $150 for individual, $300 for family tiers Copays for generic drugs remain the same Other copays and the annual maximum for labs and diagnostics will increase in 2019 and remain unchanged for the life of the contract 3
4 Pension Maintains pension benefit for eligible employees at $54 multiplier with continued service accrual Nationally, pensions like BMDA s (traditional defined benefit pension plans) are trending toward elimination Only 13% of all employees have access to a pension like this Only 7% of private manufacturing employers offer a pension like this 4
5 Other Provisions Tightened seniority provisions for reciprocity Retained special shifts Tightened BIW requirements to use subcontractors Introduced limits on involuntary local facility assignment Quarterly engagement regarding need for contract employees Added excused unpaid code for Selectman/City Council Duty 5
6 Flexible Workweek BIW/BMDA Last, Best, & Final (LBF) Comparison: Category Current Contract BIW LBF BMDA LBF Shift Start +/- 2 hours +/- 1 hour +/- 1 hour (4x10 weeks) +/- 1 hour +/- 2 hours (4x10 weeks) Workday Minimum 4 hrs 8 hrs 6 hrs 4 x 10 Work Week 15 times/ year 5 times/ year 10 times/ year Notice Requirements & Duration of Schedule Shift schedules submitted every week Effective for at least one week Start times may vary each day Shift schedules submitted week before Effective for one month Same start time each day Schedule exceptions for emergent events Shift schedules submitted every week Effective at least one week Start times may vary each day Notes: - BIW s proposed changes would be effective 1/1/ BIW LBF retains 70 hours lost time before loss of flex privilege 6
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