Local 1123’s most recent contract with National Consolidation Services was signed in late 2018, when the business was on the brink of bankruptcy. The local was forced to accept a wage freeze and a “new hire” tier $3 per hour below the regular rate, but got the company to agree to a wage reopener in April 2020. The company told the union that the tier was necessary because they were losing so much money on one of their customer accounts, and gave their word that they wanted to get rid of that account and then they should be able to get rid of the tier.
As the local prepared for the wage reopener, the company president resigned over differences with the parent company. Shortly thereafter, the company's lawyer resigned citing a lack of integrity on the part of the parent company. Business has remained extremely slow, even prior to the pandemic, and the company initially indicated that they could give raises but would have to keep the tier.
Nonetheless, the Local 1123 negotiating committee made it clear that they felt they deserved raises and were not interested in keeping the tier.
Negotiations took place on April 16, and lasted just 3 hours via video conference. After rejecting a “five-year-plan” proposed by the company, which would have narrowed but not removed the tier, the union negotiated a settlement which provides for 50-cent across-the-board wages each year and removes the tier. The new starting-wage language will start people $2.00 under scale for their first year, and $1.00 under scale for their second year, but everyone will progress to reach the top rate at the end of their second year.
The Local 1123 negotiating committee consisted of President Charles King and Financial Officer David Bulwan. They were assisted by Field Organizer Jason Whisler.