Members Ratify Veolia Contract
201 Secures Defined Benefit Pension Plan

     Local 201 members who work in the Lynn Waste Water Treatment plant for Veolia Water voted on Thursday, May 17, to overwhelmingly ratify a 3 year contract with the French multi-national.  There are currently 30 bargaining unit members at the plant which was organized by Local 201 in 1994.
     Unlike the other contract negotiated locally by 201 with Ametek, the Waste Water contract is not patterned on our GE contract and, for many years after ’94, catching up on wages was a primary focus.  That effort was successful, as wage increases have averaged 3.8% over the last 6 years.  The new agreement shifts some potential wage increases to establish, for the first time, a defined benefit Pension Plan for our members there.  Other highlights include caps on medical costs our members may have to pay, additional paid time off, preservation of the bargaining unit, and renewal of a “no layoff” clause.
     Below is summary of the agreement which was distributed in the plant as a flyer, except for the “Note” in italics following the wage increases.

TENTATIVE AGREEMENT REACHED
OFFICIAL NOTICE – MONDAY, MAY 14, 2007

     IUE-CWA Local 201 and Veolia Water reached a tentative agreement on a new 3 year labor agreement at approximately 4 PM on Friday, May 11.  The agreement came after two long difficult negotiating sessions with a Federal Mediator involved.  Your Negotiating Committee feels we achieved our objectives with this agreement, winning a pension plan, capping and modifying medical increases, getting 3 general wage increases, improving “time off,” while retaining our no layoff clause and keeping our Bargaining Unit intact.  The union also was successful in resisting many other negative Contract language provisions proposed.
     Local 201 is tentatively scheduling information meetings and a ratification vote for Thursday, May 17 at 1:15 PM and 3:15 PM at the Union Hall.  Below are some summary highlights of the agreement.
                  Summary Highlights of Tentative Agreement
I.  WAGES

• 1.5% General wage increase (5-18-07).
• 1.5% General wage increase (5-1-08).
• 1.5% General wage increase (5-1-09).*

(Note: Wage increases were low for 2 reasons, (1) monies were diverted to start a defined benefit pension plan, and (2) wage increases had been "above average" for a number of years, as compared to other similar plants, and higher than GE increases also.)

* The 5-1-09 increase will not apply to any operator who does not have a Grade IV license, by May 1, 2009.  If such operator only has a Grade 2 or 3 by May 1, 2009, his pay rate will stay at the May 1, 2008 rate.  If such operator has no license, his pay rate reverts back to the current $24.77 rate. 

• “Side bar” letter on Grade IV classes being held at Plant.

• Current General Wage/COLA clause stays in contract, but is waived for 3 years.
• Progression (step raises) totally restructured.
• Shift Premiums increased:

                       Swing shift – current $1.00 per hour 

                                              increases to $1.05 (4-1-2008)

                                              and to $1.10 (4-1-2009).

                        Night shift – current $1.25 per hour

                                             increases to $1.30 (4-1-2008)

                                             and to $1.35 (4-1-2009).

• $100 net (not gross) tool allowance (Jan. 2008).
• Pager premium increased from $75 weekly to $100 weekly.

II.  Medical Insurance

• Company medical and dental plans.
• Currently members pay approximately 11% of the Company plan costs due to rates frozen from 2001 – 2007.
• Effective 5-18-07 – members shall pay 15% of current plan costs (approx. $7 to $21 bi-weekly increase depending on single, 2 person, or family coverage.)
• Effective 1-1-08 – Members shall pay 20% of plan costs.*

                 *However, if in any year plan costs rise by 11% or more, members’ increases
                   are capped by using the following formula: 11-15% increase – members 
                   payment reduced to 18%; 16-20% plan increase – members’ payment reduced 
                   to 16%, 21-25% plan increase - members’ payment reduced to 14%; and a
                   26% or more plan increase – members’ payment reduced to 12%.

• Medical Offset Adjustment Payment

              Member shall receive on 12-1-07 a gross payment of $500 (if member is in
              single plan), $750 (if member is in 2 person plan), or $1,000 (if member has
              the family plan).              
          All other Company plans – vision, disability, etc. stay in place.

III. Pension/Retirement

• 401K Plan stays in place.
• A defined benefit Pension Plan!!

-         IUE-CWA Pension Plan

-         Company contributes $.50 per hour for all paid hours (1-1-08)

-         Company contributes $.75 per hour for all paid hours (1-1-09).

Example: if a member worked 17 years with the above $.75 per hour rate, such member would earn approximately a $574 lifetime monthly pension. Of course, more years or an increased rate would mean a higher pension.

IV.  Paid Time Off

• Additional floating holiday gained in the “side bar” of the 2001 Contract has now been moved into the 2007 Contract itself.
• Additional sick day gained in the “sidebar” of the 2001 Contract has now been moved into the 2007 Contract itself.
• An additional Perfect Attendance Day for any member who has 2 perfect consecutive 6 month periods (would get 5 paid days instead of 4).

V.  Other
            -  No layoff clause retained.
            -  Shift leaders remain in Bargaining Unit.
            -  Foul weather gear – provided every 2 years (instead of 3 years) effective 2007.
            - Safety Award Program maintained – meetings mandatory.
            - 30 minute break for everyone (instead of two 15 minute breaks).
            -  Upgrading language change.
            -  Others.