IUE-CWA LOCAL 201 GE CONTRACT 2011 REPORTS

GE CONTRACT 2011 -REPORT # 8

On Wed. June 1st in the AM. session, GE conducted "financial and environment" presentations for two of their business units -  Energy and Transportation. The presentations provided some valuable information about GE profits and the markets. However, the main point of GE's presentation was to make a case that their major competitors were shifting to high deductible Health Plans, eliminating Defined Benefit Pension Plans for New Hires (in favor of Defined Contribution Plans), raising New Hires optional retirement age, eliminating retiree medical plans, implementing 2 tier new hire wage scales, using lumps sums and thus shredding "legacy costs". GE repeats and repeats the words every day "it is brutally competitive market". The Union reps. wait to rebut to the afternoon session

On Wed. June 1st in the afternoon session, the Union confronted the Company with a massive defense of our New hires, saying we cannot accept any more attacks on them. In fact, the Union noted to the Company that our first 3 proposals in our Benefits Package is to restore 3 items you took away from them last Contract. Union negotiators pointed out there are other ways to be competitive than just taking it out on our next generation and that in fact locals have made many concessions to stay competitive. The Company was asked how is a member on 2 Tier wages making $14 to $20 an hour supposed to save for retirement with no Defined Benefit Pension Plan? Others brought up that the attacks on the New Hires began at GE in 1988 and continued through 2007 ;and that we are done accepting anymore. We are a union "family" and need to take care of the young coming after us. Much passion was shown in defense of the New Hires. It was also brought up that the elimination of the Defined Benefit Pension Plan for New Hires will quickly lead to frozen Pension Plans for current members.Other union reps. questioned the quality , longevity, and loyalty of future GE employees that would come in on 2 tier wages with a high deductible Health Care Plan and no pension. The union questioned that there appears to be 2 classes of citizens at GE - the upper band executives that get 2 Pension Plans, high wages, stock options, any medical they want and our union new hires, which get nothing!  The threat of the competition is put totally on our backs said the Union. The Company responded that they have done similar things with their salaried employees, that they see no evidence of not being able to attract and retain people, and that GE jobs are still the most desirable around. The meeting got a bit testy at the end of the session, as many Locals began stating they would not recommend a Contract with more attacks on New Hires.

On Thursday. June 2nd, the Company continued their string of "ideological" presentations in their  transparent attempt to soften us for take-always and concessions. This time it was to bring in another Professor to advocate why consumer driven health care is the way to go to fix the Health Care Problem in America. He appeared to supporting some type of "hybrid "consumer health plan - where every "stakeholder" (Company, Providers, Insurers and Individual etc) gets together and somehow fixes the Health Care system because it is to everyone's benefit. He did stress the Individual's choices being key, similar to GE Health Choice Plan. Union negotiators told him that maybe the US should look at some of the much better Health Care models in other countries and talk to GE first about their lack of a role in real US Health Care Reform. The presentation was really a waste of time knowing the specific issues in each sided Health Care Proposals facing us. The union is not going to change its principle and embrace Consumer Driven Health Care Models.

The Company made a second presentation. This one was on IUE-CWA GE wages. They presented charts showing the wage gains made under the last 3 Contracts 2000- 2007 as a result of  General Wage Increases, the COLA clause and Skilled Trades Adjustment. They stated that the average GE wage now is $28.13 per hour and $9 to $11 per hour of the Industry average (using BLS statistics for "Total Manufacturing" and "Manufacturing Durable Goods" (and a third electrical/electronic category). GE than presented a graph saying that there figures show a wage, premiums, and benefits (wage related and non-wage related) roll up cost per hour to GE of $66.85. The Company provided no figures, of course, detailing what their figure is on the profit per hour made off each GE employee. Union reps. raised the issue of how many locals and its members took wage freezes, lump sums, and 2 tier wage rate systems over this time period in attempts to save jobs. How much did the Company save over the years with the New Hires that do not get the 10% for 5 years.? The Company was also questioned why OT was included in their roll up figures, when that is something solely under the control of the Company.

The second week of negotiations thus concluded with MAJOR "principle" and "practical" differences existing between the Company and Union, There is some serious concern of whether an agreement will be reachable. Most union negotiators will be headed tomorrow to the big CBC Rally in Erie Pa. to unite with their members and fellow brothers and sisters in all the other unions. This will be enjoyable hearing words of support from our members for practical union proposals, especially after listening to th.e Company catch phrases for 2 weeks of  the "brutal competition",  the " trends of competitors" and the "reset economy"- all in attempts to justify "resetting" our Standard of Living!

Negotiations resume on Monday, June 6 with the Union scheduled to put on an "Economic" presentation and GE a "Job Security" presentation.

GO TO  www.geworkers.org for a CBC Summary of the entire second week. It is due to be on line today.