UE Local 155 members at the Stepan Company, a chemical manufacturer, voted to approve, on December 12, the company’s final offer for a new three-year agreement. The new contract increased wages by 2.75 percent (retroactive to November 28), and will bring two additional raises of 2.5 percent each on November 28, 2009 and 2010. Workers in the classification of blended operators received an additional 50 cent and hour equity increase. The average hourly wage prior to the new agreement was $27.24.
This is the second UE contract for Stepan workers in Fieldsboro. The workers organized into UE in 2005 and fought the company through a 14-week lockout before winning their first contract in 2006. Stepan workers in Anaheim, California are members of UE Local 1421.
The progression schedule for new hires is cut in half, from two years to one year. New employees will start at $2.00 below the job rate and get $1.00 increase after each six months. Premium pay (in addition to time and one-half) for working Sunday as the sixth day of the week increases from $25 to $30. The schedule premium (payable to all employees who work rotating shifts, paid for all hours) increases from 75 cents to $1.00 per hour. The overtime meal allowance increases from $12 to $14. Workers gained the right to schedule up to three vacation days in half-day increments. The annual safety shoe allowance increases from $250 to $275. Employees will receive one work jacket at the start of the contract, to be replaced as needed. The mandatory annual physical exams are changed to every other year.
The supplemental weekly temporary disability benefit increases from $200 to $225. Workers absent for non-occupational injuries or illnesses receive this supplement in addition to a New Jersey state benefit that pays two-thirds of the worker’s average weekly wage, up to a maximum of $531 a week, for up to 26 weeks.
Employees will continue to be covered by the Stepan corporate plan Blue Cross healthcare plan, which is a PPO, and current language will remain unchanged at least through March 31, 2010. Effective April 1, 2010, if changes are made in corporate health benefits or employee contributions, the same annual modifications will apply to UE members in Fieldsboro. Employee contributions will remain at 20 percent of the monthly premium for single or dependent tiers in 2009. Employee contributions may increase to a maximum of 22 percent for single coverage and 25 percent for coverage including dependents in 2010, and to a maximum of 25 percent for single and up to 30 percent for dependent coverage in 2011.
The union committee fought long and hard to get the same three percent wage increases as the Anaheim (UE) and Millsdale (Teamsters) bargaining units. But the company, citing the economic downturn and “comparable” New Jersey wages, refused to budge from their final wage offer. This was in spite of the company’s announcement of “record earnings” and changes to their management bonus plan that raised the limit on annual bonuses from 75 percent to 125 percent of a manager’s salary.
The committee successfully fought back company attempts to impose mandatory “work until relieved” overtime. While the committee worked hard to find and propose alternate medical plans, the company, after apparent progress in discussions about switching from the Stepan corporate plan to a PPO through the Steelworkers Fund, suddenly rejected the change. Their excuse was some language in the Steelworkers plan participation agreement that the company found objectionable, but it appeared that the Stepan corporate office was looking for an excuse not to consider the Steelworkers plan.
The union bargaining committee consisted of Ron McCullough, chief steward and president of Local 155; Steve Cameron and Jeff Thomas. They were joined by Bryan Martindale of UE Local 1421 from the Anaheim, California plant, for two bargaining days in late October and by Jeff Seaman and Mary Shields, Teamsters union members at Stepan’s Millsdale, Illinois plant, for two days in November. The union committee was assisted throughout by Field Organizer Jim Ermi.