Hopes of smooth, easy negotiations because of excellent company profits proved baseless for members of UE Local 684 who work at The Electric Materials Company (TEMCO), a specialty copper mill. After exchanging proposals with the company on August 20, union bargaining committee members realized they were in for a fight. The long list of company demands included higher medical cost sharing, increasing number of years to reach the third, fourth and fifth weeks of vacation, elimination of the defined benefit pension for employees hired after effective date of agreement, and harsh disciplinary steps for unexcused absences.
The UE negotiating committee rejected and resisted the proposed takeaways. Aiding them was a strong contract support committee that mobilized the membership. During negotiations workers wore “no concessions” buttons, posted signs and, on all three shifts, wore their union T-shirts. The committee kept the membership informed on the status of the talks through gate rallies and leaflets. Eventually this unity resulted in a five-year agreement that the members ratified.
With great reluctance the company withdrew its concessionary vacation proposal and revised the disciplinary steps for unexcused absences.
MERIT WAGES OUT
Union members at TEMCO were determined to eliminate the merit wage system and to gain automatic wage progression to job rates. To achieve that goal the contract expiration date of October 4 was extended for one month. During that time, the union committee negotiated a new wage structure, job titles and grades and provisions that guaranteed all employees will reach the top of the grade.
In order to provide an equitable allocation of wage increases, a wage schedule and wage adjustment schedule were developed. All employees were slotted into their new job titles and job grades and will follow general wage increase principles. Employees whose wage is below the base hourly wage rate for their job classification will receive inequity raises until they reach the top rate. Employees at or above the base hourly wage rate will be redlined and entitled to an increase equal to the following percentage of the base hourly wage rate of the job grade to which they are assigned: 2 percent on the effective date, 2 percent in 2009, 2.25 percent in 2010, 3 percent in 2011 and 3 percent in 2012.
Local 684 members secured significant changes in contract language, including lowering the probation period from 90 days of actual work to 75 days, equalization of overtime opportunities and shift preference for job vacancies.
The agreement also improves the layoff and recall language, bonus pay for performing higher-graded work, adjusts start times for applying shift differential, and vacation and profit sharing allowances for employees who retire or die. The vacation program has improved by allowing employees to utilize vacation in half-day increments. Employees may also use their paid personal absences in two hours increments.
In other union gains, the company increased the life insurance by $2,000 per employee. Dental insurance benefits will go up $500, the short-term disability benefit was raised by $35 per week, and long-term disability by $70.
Healthcare costs will increase through higher deductibles and some increased co-pays, but not the increases the company had sought throughout negotiations. Workers will also now have a choice of three different health plans. For employees hired after the effective date of the agreement the defined pension plan will be replaced with a 401(k) plan with company contribution of 4 percent of employees’ wages.
Members signed petitions requesting that employees who lost continuity of service due to a layoff and were later rehired, regain their original hire date as their seniority date for purposes of layoff and filling vacancies. The union negotiating committee presented the petitions to the company, and achieved this change.
While the feeling at the ratification meeting was that they deserved better, members expressed satisfaction at winning an important battle by eliminating the merit wage system and gaining automatic progression to job rate.
The Local 684 negotiating committee consisted of President Crystal Pratt, Chief Steward Jim Lafferty, Recording Secretary Dale Wilkinson, Executive Board Member Ken Benden and committee members Mike Doyle, Derek Rizzo and Rick Schriefer. They were assisted by UE President John Hovis and Intl. Rep. Deb Gornall.