Summary of 2016 Last, Best & Final Offer

Transcription

1 Summary of 2016 Last, Best & Final Offer The proposed agreement would cover the period between July 11, 2016 and April 10, 2022 Your IAM Bargaining Committee unanimously recommends ratification of this five year, nine month agreement that delivers generous wage improvements, substantial retirement contributions and a competitive benefits package. Table of Contents Wage Package 2 Pension and Retirement Health Care Benefits 5 Other Modifications 6 3 $4,000 Bonus Offered, GWIs Totaling 16% Up front $4,000 ratification bonus (ONLY AWARDED IF OFFER IS RATIFIED on July 9, 2016) 3.0% General Wage Increase in % General Wage Increase in 2017* 2.5% General Wage Increase in % General Wage Increase in % General Wage Increase in % General Wage Increase in 2021 *Ability to take 2017 GWI as a lump sum payment (eligibility requirements) Paid Time Off and Work Schedule District Lodge 776 Ft. Worth, Texas 7 WE Maintained Health Care Choices: HMO, POS and LM HealthWorks for Active Employees Maintained HMO and POS choice for current employees New hires eligible for medical coverage on date of hire POS Company-paid cost share at 85% with cap protections HMO company-paid cost share at 87% with cap protections LM HealthWorks company-paid cost share at 90% with cap protections Annual LM HealthWorks HealthFund credit of $250/year for employee only and $500/year for employee plus one or more each year NO PENSION FREEZE for eligible employees 11% Pension Increase for Current Employees The pension benefit increases from $90 to $100 per month, per year of credited service for current employees Bridged service benefit will be $33 per year of credited service This document is intended to be an illustration of the tentatively agreed upon Collective Bargaining Agreement with Lockheed Martin and the IAM. Increases in Savings and Basic Benefit Plans Employees may contribute up to $65 weekly in the Hourly Savings Plan with a 60% company match. The unmatched contribution limit is $200. The company contribution for the Basic Benefit Plan will be raised 7.5% to $43 per quarter Cost of Living Allowance ALL EMPLOYEES Annual COLA Supplement of $800 for all employees Current COLA formula continued for all employees $4,800 Total COLA Payments 71 Days/568 Hours of Company Paid Holidays 1

2 Your IAM Bargaining Committee negotiated a competitive package that provides significant gains in wages over the next six years through a combination of a $4,000 ratification bonus, six General Wage Increases and $4,800 in total COLA supplements. Employees on active payroll as of July 11, 2016, or on authorized leave of absence of less than 90 days will receive a $4,000 ratification bonus if the offer is ratified July 9, The ratification bonus is payable by August 26, The ratification bonus may be deferred to the Hourly 401(k) Savings Plan. Your IAM Bargaining Committee fought hard to maintain the COLA supplement. Employees will receive six, $800 COLA payments each year of the agreement. The first payment will be paid in November

3 IAM Secures Retirement with Pension Increase and Flexible Retiree Medical At a time when we ve seen many cuts to retirement, your IAM Bargaining Committee has secured a major increase in pension and other programs for retirees. Unfrozen pension locked in for nearly six years. IAM Receives 11.1% Pension Increase NO FREEZE For eligible employees who retire from active service on or after January 1, 2016, their monthly pension benefit increases 11% from $90 to $100 per year of credited service. Eligible employees will receive a bridged service benefit of $33 per year of credited service. At a time when we ve seen companies freeze pensions, your Bargaining Committee secured a major increase. OneExchange is a marketplace that helps Medicareeligible post-65 retirees research and enroll in individual health care plans. Additionally, eligible retirees and their spouses receive concierge service to ensure they select the best coverage for their needs. OneExchange will be available to IAM retirees commencing retirement on or after Jan To help offset medical costs, Lockheed Martin will contribute $175 per month ($2,100 annually). The company contribution can be used to pay for eligible medical, prescription drug, dental, vision premiums; as well as eligible out-of-pocket healthcare expenses. Post-65 Retiree Medical Continued VSIP Adds Financial Incentive for Future Retirees A Voluntary Separation Incentive Program (VSIP) is a lump-sum payment made to eligible employees. As reflected in its official title, a decision to take a VSIP is voluntary. How VSIP Works: May be offered by the company at any time during the agreement Available to employees with 25 years or more seniority Payout is $1,000 per year of service, not to exceed $30,000. Additional early retiree subsidy of 10% The current MERMP and Senior HMO offerings will continue to be offered at the current contribution rates until Dec. 31, January 1, 2017, the monthly flat contribution will change to $40 (Employee)/$80 (Employee +1) with the employee paying the cost of plan that exceeds Company subsidy. Effective Dec 31, 2017, the MERMP and Senior HMO offerings will be discontinued and the OneExchange Marketplace will replace these plans for IAM retirees commencing retirement on or after Jan Pre-65 Retiree Medical Improved Company subsidy increased to $540 (Employee) or $1,080 (Employee +1) monthly. If offered and selected for VSIP an additional 10% is added to your subsidy amount. 3

4 IAM Delivers Generous Increases to Savings Plans and 401(k) Your IAM Bargaining Committee has secured a major increase in retirement savings programs. Employees who have the Hourly Savings Plan and IAM 401(k) plans will have financial security with substantial company contributions, giving you more financial security for retirement. How Does Your Retirement Savings Grow During the Life of the Contract... Hourly Savings Plan Contribution Increase The company will match 60% up to $65 per week of your employee contributions. That compares to $59 in the previous agreement a substantial improvement in the value of this benefit. In addition, employees may increase their unmatched contributions up to $200 per week. IAM 401(k) Contribution Sustained The company will also make a substantial contribution to the IAM National 401(k) plan. Eligible employees hired or rehired on or after July 2, 2012 with less than 4 years of service will receive a 3% weekly company contribution of their base pay, and employees with 4 or more years of service receive 4% weekly company contribution of their base pay. Basic Benefit Plan Improved For eligible employees, hired or rehired on or after April 10, 2006, the company will make a quarterly contribution of $43, an increase of 7.5% from the previous contract. No employee contribution is needed for the Basic Benefit Plan. Retirement value assumes an IAM Employee, with 4 years of service, working 40 hours weekly, with an average base rate of $33.00 in Value is over the life of the contract with 5% growth. Illustration does not include retirement contributions before July 11,

5 You DEMANDED Health Care Choices and we preserved Your HMO, POS and LM HealthWorks Your Bargaining Committee was able to maintain our current health care options- HMO, POS and LM HealthWorks. Highlights of the proposal are outlined below. Medical plan users will share a relatively small amount of the actual costs with a generous company cost share. Employees hired before July 11, 2016 may select from the Aetna Health Maintenance Organization (HMO), or Aetna Point of Service (POS) or LM HealthWorks. Three health care plan choices! The company will continue to offer LM HealthWorks, an Aetna Preferred Provider Organization (PPO) medical plan. Active employees will pay only 10% of the cost. Lockheed Martin will pay the majority of the cost of the plan at 90%. An improvement from today s 87% company cost share. New hires will be offered the LM HealthWorks plan only. The LM HealthWorks plan combines comprehensive coverage with a HealthFund that helps reduce out-of-pocket expenses like co-pays and deductibles. Aetna Health Maintenance Organization (HMO) Fort Worth 87% 13% Company Paid Premiums Aetna Point of Service (POS) Fort Worth 85% 15% Company Paid Premiums LM HealthWorks Fort Worth Employee Paid Premiums Available to employees hired before July 11, Weekly Employee contributions are capped: $40/$80/$120 ( ) and $60/$120/$180 ( ) Employee Paid Premiums Available to employees hired before July 11, Weekly Employee contributions are capped: $50/$100/$150 ( ) and $66/$132/$198 ( ) 90% 10% Company Paid Premiums Employee Paid Premiums Available for all current employees and new hires. Plan design unchanged for duration of agreement. Weekly Employee contributions are capped: $30/$60/$90 ( ) Continued Dental/Vision Coverage Dental now includes implants 5 Beginning July 11, 2016 new hires will be eligible for benefits on their date of hire: Health Care (LM HealthWorks) Dental/Vision Group Universal Life

6 Insurance Benefits and Other Modifications Enhanced Protections for You and Your Family Life, disability, and accidental death insurance plans provide an important source of financial security for your family in the event of your death or serious injury. A variety of insurance plans continue to be available to you, including both company-paid and optional programs. Improvements made to these plans are shown below, plus information on other offerings, including flexible spending accounts. Medical Benefit Continuation Your Bargaining Committee added another benefit to help protect your future. In the event of a layoff, your medical benefits will be continued for 31 days following layoff from the company at no cost you. Group Universal Life Insurance Improved During the 2017 Annual Enrollment Period, you will have the opportunity to purchase additional employee life insurance through the Group Universal Life Insurance plan and no Proof of Insurability will be required. The plan is also being improved by increasing coverage options, from 1 times to 6 times annual base pay up to 8 times annual base pay. Life, Accidental Death and Dismemberment Insurance All employees actively at work as of Jan. 1, 2017, will have their benefits increased from $34,000 to $37,000 under each plan. The company pays the full cost for this coverage. Short-Term Disability Increased All employees actively at work as of Jan. 1, 2017, will have their weekly maximum short-term disability benefit improved from $340 to $380 weekly. The company pays the full cost for this coverage. Please note that for California residents, this coordinates with the California State Disability Insurance benefit. Other Optional Employee Paid Coverage Maintained Special Accident Insurance Improvements Dependent Optional Term Life Maintained Health Care Spending Account Maintained Dependent Care Spending Account Maintained Attendance Control Program On July 11, 2016, all employees in a step of the ACP will be backed out to step zero with no infraction hours. An important win for all employees. Painter Promotion Painter finishers on the active payroll as of July 11, 2016 will receive automatic promotion. 6

7 71 Days/568 Hours of Company Paid Holidays 9/80 Schedule Plant Operations 3/12 Schedule Flight Line/Test Sites 5/40 Schedule Some Flight Line & Maintenance Week 1: Mon.-Thurs: 9 hours Fri: 8 hours Week 2: Mon-Thurs.: 9 hours Fri: Off Three Shift Options Up to 26 Additional Days Off Per Year! Work 12 hours Fri.-Sun.; Off Mon.-Thurs. Two Shift Options Work 36 hours, get paid for 40 hours! Traditional 40 hour work week schedule 8 hours, Monday Friday. Three Shift Options Sat. Sun. Weekend OT! 7

8 The Value of the Offer This graphic illustrates the value of the company offer based on an average employee s income. The combination of a cash bonus, annual cost of living allowance combined with your wages and retirement plans are just some of the pieces that make up the total value of the offer presented. Six Wage Increases Retirement Contributions Additional Cash Pension Increase Retirement value assumes an IAM Employee, with 4 years of service, working 40 hours weekly, with an average base rate of $33 in Value is over the life of the contract with 5% growth. 8