The members of UE Local 234 have a new three-year contract with their employer, Fairbanks Scales, with raises totaling 9 percent, no increase in workers' share of health insurance premiums for the first two years, and only a small increase in the third year. Agreement was reached two days before the October 31 expiration date, and negotiations were "fairly smooth," says Local President Bob South.
The annual wage increases are 3 percent, 2 percent and 4 percent. No increase in health insurance contributions for the first two years means that Local 234 members will have gone eight years without an increase in these weekly payroll deductions, which remain $27.50 for an individual, $52.50 for employee and one dependent, and $76.50 for family. In the third year of the new agreement those amounts will increase by 5 percent.
At the company's insistence, the insurance plan is changed to a Health Savings Account (HSA) plan with higher deductibles. The deductibles will be $1,200 individual and $2,400 for a worker with one or more dependents. However, the union negotiated company reimbursements to help workers cover the deductible. In the first year, the company contributions for the deductible will be $950 individual, $1,350 for individual plus dependents. In the second and third years those employer contributions will be $850/$1,150 and $750/$1,000 respectively. Any unused portion of that contribution remaining at the end of the year will roll over into the employee's account for the following year, providing additional protection against deductible costs. Workers can also put their own money into the HSA to cover future deductible charges; such worker contributions are made on a pre-tax basis. And while the employer wanted the HSAs to be administered by a bank/insurance broker near the company's corporate headquarters in Kansas City, the union insisted that the plan be run through a local bank.
The new plan fully covers one complete physical examination each year for each covered individual (employee or dependent). This service is not subject to the deductible. Treatment by an out-of-area medical provider (50 miles or more from St. Johnsbury) will be paid as "in-network." A Health Reimbursement Account (HRA) will be available to workers on Medicare or the Veterans' Administration Tricare, and those workers will receive the same company contributions. Another improvement related to healthcare helps workers out of the plant on a personal leaves of absence. Previously, a worker in that situation had to pay all insurance contributions up front. Now such payments can be made weekly.
The union gained a new vision care benefit, with will pay the first $90 for an eye examination. The maximum payment per person for dental services increases each year. That amount was $900; it goes to $950 the first year, $975 the second year and $1,000 the third year. The weekly accident and sickness (A&S) benefit, which was $240, was significantly increased to pay at least 66 percent of the worker's take-home pay (after taxes and insurance contributions.) For some workers in lower labor grades, A&S will pay 100 percent. Life insurance goes up from the old amount of $28,500 to $30,000 by the end of the contract, in $500 annual increases.
The pension multiplier was not changed, but workers age 60 or older, or who turn 60 over the term of the contract, will enjoy an increase in the monthly retirement supplement. The supplement goes up from $22 in the old contract to $22.50 in the first year and $23 in the third year. The supplement is paid during the first five years of retirement.
The hourly wage supplement for lead persons was increased from 40 to 50 cents. A change in contract language will now allow a worker to withdraw from a newly-awarded bid job, and return to his or her old job, within the first two days, with no penalty.
For the first time ever, the union will be involved in new-employee orientation, with the opportunity to make a presentation about the union. "Another new development," says President Bob South, came at the beginning of bargaining on September 8. "We always propose that they pay the lost time for the union bargaining committee, and they usually hold off on agreeing to this until the end of negotiations," said South. This year the company agreed immediately to pay the union committee's lost time wages.
The union was successful in getting the company to agree to merge the factory and office bargaining units into a single bargaining unit, and in moving the expiration dates back a few days so that the contract will no longer expire on Halloween. This had caused hardships for bargaining committee members who have young children.
The union bargaining committee consisted of Bob South; Polly Scott, vice president; Sally Lewis, chief steward; Lisa Cady, division steward, electronics; and George Moore, division steward, factory. The local bargaining committee conducted most of the bargaining itself, and was assisted in wrapping up the agreement in the final days by UE Field Organizer Rachel Clough.