UE Local 155 members at Tinius Olsen Testing Machine Co. have negotiated and ratified a new three-year agreement that will increase average wages by $1.62 and improves the defined benefit pension by 50 cents per month per year of service.
Wages increased by 1.5 percent in 2012, 2.5 percent in 2013 and 2.5 percent in 2014. The average hourly rate in the final year of the old contract was $24.59. In addition, each member received a lump sum bonus immediately following ratification equal to 1 percent of the employee's straight time hourly rate, multiplied by 2080. The hiring rate for trainees was dramatically increased, from $7.86 under the old agreement to $12. The hourly wage increase increment for trainees, which had been 15 cents after each 320 hours worked, is increased to 25 cents.
The current pension multiplier is $31, and that will increase by 25 cents on February 11, 2013 and another 25 cents on February 11, 2014. (The multiplier is multiplied by the employee's years of credited service to determine the monthly pension benefit.) The company also maintains a 401(k) savings plan that had been completely funded by employee contributions. In the new contract the company pledges to contribute 25 cents for each dollar contributed by the employee, up to 1 percent of the employee's gross pay.
Employee contributions to health insurance premiums will increase each year under the new agreement. In the old agreement the contribution levels had been $620 for single employee, $790 for employee plus one dependent, and $930 for employee plus two or more dependents. In 2012 the respective contribution levels increase to $660, $815, $955; in 2013 to $700, $840, $980; and in 2014 to $740, $865, and $1,005. The monthly "opt-out" payment to workers who choose not to be covered by the health plan increases in March 2012 to $495 (it had been $465.)
Paid vacation entitlement for workers with between 45 days and one year service is increased from one week to one week and three days. For workers with between one and two years of service, vacation increases from one week and one day to one week and four days. The formula used to calculate each worker's annual vacation overtime bonus was improved. The vacation scheduling language was changed to eliminate the annual vacation shutdown, thereby giving members more freedom to schedule vacation time at their own discretion.
Workers also gained the right to carry over up to eight hours of paid personal time into the following calendar year.
The proposed a drug and alcohol testing policy, allowing for testing in cases of reasonable suspicion (which the agreement defines) and requiring rehabilitation in the case of an employee's first positive test. The parties did not reach agreement on this, but the company included it in its last, best and final offer and is taking the position that because they bargained with the union about it, they can now implement the policy. The union does not agree and is prepared to file a grievance if the plan is implemented.
Assessing the new agreement, Chief Steward Mike Roberto calls it "fair." He says bargaining was "hard fought on both sides," adding, "the 2 ½ percent that we got, in this economy, is pretty good. Another big issue for us, it was nice to get away from the shutdown that's been on the books for decades. Now we don't have to take our vacation at the end of July, we have from April to October. So that was a good win."
Workers at Tinius Olsen manufacture machines that are used to test various industrial products. The union bargaining committee consisted of Mike Roberto, Local 155 Recording Secretary Steve Weir, Local Executive Board Member Brian Best, and Gary Campbell. They were assisted by UE Field Organizer Jim Ermi.