Contract Issues for Lower Service Members

Business Agent’s Column

By Ric Casilli

OUR YOUNGER MEMBERS: SOME KEY GE 2011 CONTRACT ISSUES

In just 3 months, on May 23, National Contract Negotiations will begin with GE in NYC. I have reported extensively on the importance of a number of immediate impact pension improvements needed in this Contract, with the high number of Local 201 members eligible for retirement in the next 4 years.

I would now like to raise some key issues, of special importance to our younger members that need to be addressed during these negotiations:

1. Substantial Wage Increase and No Management Health “Choice” Plan with high employee costs. These 2 issues are closely related. Our younger members cannot afford to be saddled for years with a high cost poor Health Plan such as GE’s Management “Health Choice” Plan and need substantial wage increases with an improved COLA, to help pay for the growing employee costs even under our current Health Care Plans (GE HCP and CMB). In the stage of life of paying high rents and/or mortgages and raising families, it is important this contract provide economic improvement and stability.

2. Eliminate the 2 Tier Night Shift Differential (NSD) Clause

This clause found its way into the National Contract in 1988 where a new hire (with no prior GE service) would receive only $.60 per hour

rather then 10% for 2 ½ years while working a back shift. In the 1991

Contract the time period was increased to 3 years, and in the 1994

Contract to 5 years. From 1997 to 2006, the union resisted GE attempts to make it even worse. Then, during last Contract in 2007, a campaign started by Local 201 members on the back shifts against the two tier clause helped reverse the tide, getting the $.60 increased to $1.00 per hour. The increase was a win but even the $1.00 is still below the percentage value of what the $.60 was worth back in 1988 relative to wage rates. What is really needed is elimination of the two tier system; return everyone to the 10% level. Two tier systems create feelings of jealousy, unfairness, discrimination etc. in the workforce- all elements in direct contradiction to GE’s desire to have people work together and “teaming”.

3. Maintain and Improve the regular Special Early Retirement

Option (SERO) and Retirement Bonus

Everyone knows this option incentivizes older members to retire

either early (55-59 years old) under SERO or after 60 years old

under the Bonus. It makes retirement more affordable. However, the Job Security aspect of these two programs for the younger members is often overlooked. It helps protect younger members from layoffs and unemployment. SERO is especially critical to the job security of younger members.

4. Stop any more Company Two Tier attempts on new hires - lowering or eliminating their retirement rights and benefits, especially their right to a Defined Pension Plan. Besides being unfair to new hires, these type proposals are a direct threat to all current members, especially members that wish to maintain decent medical and pension benefits to the time they are ready to retire years from now. Our younger members could really use an improvement in the Pension Career annuity formula – which will help them throughout their careers slowly build a better pension. However, if more and more of the new hire workforce have fewer rights, benefits and no pension – why would they care about the future minority getting any more improvements to their pensions, when the majority has no pension?? Again, these two tier systems are in direct contradiction to the Company’s desire for “teaming”, by creating divisions and jealousies inside a workforce that needs to work together. Any more two tier systems need to be resisted strongly by members.