General Dynamics & GE up next

IUE-CWA SECURES DECENT AGREEMENT
WITH LOCKHEED MARTIN

                        The IUE-CWA GE & Aerospace Conference Board has just secured a
4 year labor agreement with Lockheed Martin (3 former GE plants), which includes an outstanding pay package, dramatic pension improvements and maintains high quality medical plans and retiree medical for current employees (and those already retired).  IUE-CWA Lockheed members voted to accept the package by approximate 92% to 8% margin on August 3, 2006.

            Bob Santamoor, Chairman of the GE-Aerospace Conference Board, said “It couldn’t have been done without the active support and mobilization of the members by the locals.  They were great.”  Santamoor, along with IUE-CWA President Jim Clark and the rest of the Conference Board, will be heading up the important 2007 National Negotiations with GE next year.

            Highlights of the Lockheed Martin package include 4 general wage increases (4%,
3%, 3%, and 3%), 8 C.O.L.A.’s and a $2500 ratification bonus.  The agreement included significant pension improvements in the formula breakpoint, guaranteed pension table, regular supplement and special supplement – as well as the largest increase in the history of the Special Pension Update.  The SERO was renewed and IEA (layoff benefits), severance, retirement bonus, and 401K plans were all enhanced.

            Rising costs for medical coverage continue to be a major issue across America, and this was the toughest challenge for the negotiating team.  The Company wanted much higher levels of cost-sharing than what ended up in the agreement and wanted no limit on what you could pay.  The agreement makes the employee co-pay 13% of the cost of the plan, but can’t exceed negotiated weekly “ekly “ekly “caps” specified in the agreement.   The caps, adjusted each year, are significantly less than anticipated healthcare inflation.  For 2007, the weekly caps mean you cannot pay more than $15 for “employee only coverage”, $30 for “employee plus one coverage”, and $45 for “employee plus family” coverage.  However, most employees will actually pay less than these amounts next year.

            The Negotiating Committee was forced into accepting higher medical contribution costs for current members that become future retirees (both for pre-65 and post 65 medical) but limited the increase and maintained the retirement plans.

            New hires, however, will have a much weaker retirement medical account and not be eligible for retiree medical insurance.

            A key positive aspect of the settlement was that current retirees (both pre-65 and post-65) will have no contribution increase for the life of the 4 year agreement.

            Local 201 Business Agent Ric Casilli stated “our Lockheed Martin brothers and sisters more than held their own in these negotiations and our GE & Aerospace Conference Board can be proud.  Lockheed Martin is #52 on the Fortune 500 in Revenues & Profits.  GE is #7.  If we can make similar advances off of GE’s higher financial base in 2007, we should be okay.  I am really impressed what the Lockheed contract does for their current retirees."

For further information contact Local 201 IUE-CWA at (781) 598-2760

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