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Local 201 piecework Report Friday July 25, 2014

Local 201 Piecework Negotiations Report 
Friday, July 25, 2014 1:00PM
After about 5 days of Company review, GE rejected Local 201’s Union Proposal #9 at a bargaining 
session on Thursday, July 24. The Union Proposal #9 restructured compensation for pieceworkers in more 
equal fashion, had additional retirement incentives for pieceworkers and contained provisions that 
broadened the pool of people that would be eligible for attractive retirement options. Union proposal #9 
would have been the best for our members and the business as it would have maximized decent 
retirement options thus reducing the need for any hard lacks of works “to the street” for dayworkers, while 
also providing a rational equal and fairer compensation payments for all pieceworkers. 
The Company rejected the proposal based on a number of reasons but the bottom line is they felt the 
proposal came with too high of an expense tag. The Union is extremely disappointed in this decision as the 
Union had spent a good deal of time finding a fair way to restructure previous union proposals and adding 
the proper “ingredients” to the package that would accomplish the 2 main goals of the parties in the 
negotiations – to achieve fair compensation for pieceworkers and maximize retirements to avoid layoffs 
plantwide with the current workload volume crisis we are heading into. Local 201 feels Union Proposal #9 
would have accomplished this for the good of all our members and the good of the business and it was a 
mistake for the Company to reject it totally. 
The Company told the Union bargaining team that the summary points they presented of Company 
Proposal #10 was their best and final offer in regards to compensation and retirement incentive parts 
of any potential agreement. The Union requested the complete language of the Company’s compensation 
part of the package and any language they would agree to in regards to the job security sections of any 
potential agreement. The Company will be providing such hopefully today or on Monday, July 28, 2014. 
The Union would note that despite our disappointment to the rejection of our Proposal #9, Company 
proposal #10 is a dramatic improvement from early Company proposals. Over the course of the last 6 months, 
the Company has slowly increased the amount of compensation for our members in their proposals in 
response to union arguments and proposals and it contains some union proposed features like the “red 
circle”, “piecework buyout” and pension update “look back” within Company Proposal #10. 
The Union bargaining committee has scheduled an internal meeting on Monday, July 28, 2014 to review the 
complete Company “best and final “ offer on the compensation section of any potential agreement and is 
also awaiting to review company responses to recent union proposals in the job security section. The Union 
bargaining committee will NOT make any final decisions on how to proceed until it has a complete 
Company “best and final” package to review. 
We will release the compensation and retirement incentive details of Company Proposal #10 to our members 
when we receive them officially in writing from the Company inserted into the main proposed offer 
document and our bargaining committee has a chance to review them. Such information release to our 
members will likely be next Tuesday, July 29 2014. 
We shall keep you posted as to any developments. 

Piecework update Wednesday July 23,2014

                                                                                                               LOCAL 201 WEB-SITE
The Company will be ready to meet with Local 201 on Thursday July 24, 2014  at 1:30PM .They have been involved (since last week) in extensive reviews of their last Company Proposal #10 and also Union Proposal #9,  which restructured the whole compensation package using a different model. Those reviews have involved Company leaders at all levels of Aviation and Corporate and will be completed either today or tomorrow morning.
All Union Bargaining Committee members should report to Bldg 1-74A by 1:30PM tomorrow Thursday, July 24, 2014.

Piecework Negotiations Update 7/12/14

Next Session Tuesday July 15



The negotiations over ending the Plant IV piecework system continue to get more complicated due to the Company informing Local 201 (almost every week) of additional work volume drops being forecasted for this year and 2015. Attempting to negotiate a transition from a piecework to daywork system is difficult enough. But trying to avoid forced layoffs and bargaining the year before a National Contract has made these negotiations extremely complicated.  The Union is dealing with the internal demographics of our directly impacted workforce. We have members in different age brackets and members that have been in piecework for different amounts of time resulting in members who have different needs and desires depending on their age and their time in piecework.


The Company has presented 10 proposals, each one getting a bit closer to the Union’s proposals. Local 201 has presented 9 proposals and the Union has also made significant compromises as the proposals have inched closer.


It has not been easy, but Union proposals have been aimed at accomplishing two main things: (1) Securing proper wage and pension compensation for our current pieceworkers and (2) Creating some decent retirement incentive options in an attempt to avoid having any members plant-wide from being forced out on the street on layoff.


The Company and Union met on July 3, 7, and 10.  The Union is concerned over 2 main issues in the latest Company Proposal #10 presented on July 10: (A) that the Company’s compensation offer to members who do not wish to retire (or are not eligible to retire) is too low and (B) their offer for those wishing to retire is missing some incentive items that would get more to retire and sets unnecessary retirement date time limits, thus narrowing the pool of people that would be eligible to go under a more desirable program.


BA Ric Casilli said “their proposal in its present form still would not achieve the results we were hoping for – fair and equitable compensation for all pieceworkers while inducing a large number of retirements to help avoid a future forced layoff situation for any of our River Works Local 201 Members. Our Committee will keep plugging away”


The Union has been reviewing Company Proposal #10 since last Thursday and will be officially responding to it at the next bargaining session on Tuesday, July 15.

Piecework negotiations update 6/19/2014

Thursday, June 19, 2014
A more detailed Business Agent’s report on negotiations was given at the Tuesday, June 17, 2014 monthly membership meeting sessions. This is a quick summary.
On Tuesday June 17, the Company presented the Union with Company Proposal #8.
Their proposal increased the retirement incentive bonus for those over 60 in line with Union Proposal #6.
However, the Company rejected a number of key points of Union Proposal #6 – namely extending the current pension update to include years 2011 through 2013 for those retiring under any incentive program agreed to in this negotiation. Their proposal also did NOT include two other key points of Union Proposal #6 which would have provided retirement incentivized opportunities for pieceworkers (now 59 years old) turning 60 between August 1, 2014 and June 30, 2015. It also did NOT include any piecework “buyout bonus” for anyone staying and converting to daywork after a red circle period.
The Union explained to the Company that their own Company proposal would NOT get them anywhere near the retirements they were seeking initially or over the entire next year. The Union said “you need to address the pension issue in some way if you have any chance of achieving the retirement results you want”. The Union also told them “you need to address the ‘buying out’ of the piecework system for those that will be staying for many more years and will be losing future wage, pension and other benefits accruals.”  
The Company proposal is not even close to addressing either one of those issues.
Local 201 then gave them Union Proposal #6A which presented the Company with another reasonable way to address the Pension issue, whereas they had rejected the Union’s 2011- 2013 extended Pension Update proposal. The Union requested the Company to count any agreed upon 2014 Retirement Bonus towards a member’s 2014 earnings for all purposes (including pension calculations) and allow anyone retiring under provisions of a piecework agreement in 2014 (or 2015) to be eligible for any pension improvements negotiated in the 2015 National Agreement going forward from the effective date set in the National Agreement. The rest of Union proposal #6A remained the same and included a reasonably calculated large “buyout bonus” for those staying and converting to daywork.
The Company has told the Union they need some time to review the Union’s adjusted proposal that addresses the pension and retirement incentive issue in a different way, as well as to review other Union comments made at the June 17th session in regards to the other provisions in Union Proposal #6A and lacking in Company Proposal #8.
Next week, it is likely that an agreed upon joint Union/Company sub-committee will meet in attempts to iron out differences in language of the Job Security provisions contained in Union and Company proposals.
The next full Negotiation session will likely be scheduled between July 1st and July 3rd, 2014.
MARK WORKMAN                 RIC CASILLI                   PETE CAPANO

Corrections to BA news paper article.

Layout errors made BA Ric Casilli’s column in the June 10 issue of the 201 News unintelligible.
Here is the corrected version:
With over 50% of Local 201 GE members reaching the optional retirement age of at least 60 during the 2015 Contract, it is critical that the next labor agreement have decent pension improvements, especially in the Pension Update, Guaranteed Pension Tables and the Pension Supplements. Improvements in these 3 areas will impact only members still working in our Defined Benefit Pension Plan and not affect any current retirees.
This article focuses on one of these 3 key areas of the pension plan - the Pension Update. Former Plant IV Board member Fred Merchant Jr. used to write about how important this update was for many Local 201 members, especially after it was lost in the 1997 Contract and regained in the 2000 Contract.
The Pension Update is a critical piece of the Pension plan which is used to “update” your previous pension earned through your career when your earnings were usually much lower. Without an update, you will not get a high enough pension to replace a decent target percentage of your current higher wages due to the drag of many lower earning years. The “update” partially fixes that built in flaw to the GE Pension plan
Below is the current 2011 Pension Update (uses best 3 consecutive of 2005 -2010 years) formula and how it applied to increase many of our members’ pensions. Once you get an update – you do not ever lose the impact of that update. The Union will be seeking another update and an improvement in this Pension Update formula in the 2015 Contract Negotiations, as well as improvements in the guaranteed pension tables, pension supplements etc.
2011-2015 GE Contract Pension Update
Using the current 2011 Pension Update Formula your pension is figured out until the end of the year 2010. Earnings you have for the years 2011 and after are added on to the 2010 Update figure (if you are eligible and it increases your earned pension through 12- 31-2010). To add on these years, most people will use the Pension Earnings Career Formulas for their calculations.
Using Careers Pension Earnings formulas
Example: Earnings in 2011 were added on by multiplying the first $40,000 of earnings by 0 .0145 and all earnings in excess of $40,000 by 0.019. An employee who earned $90,000 in 2011 would have:
$40,000 X 0 .0145 = $580.00 + $50,000 X 0.019 = $950.00
$1,530.00 annually or $127.50 monthly added to their pension for the year 2011
In 2012 the formula changed by now multiplying the first $45,000 by 0.0145 and any excess earnings above $45,000 by 0 .019
2012 Example #1: An employee who earned $90,000 in 2012 would have
$45,000 X 0.0145 = $652.50 + $45,000 X 0.019 = $855.00
$1,507 annually or $125.58 monthly added to their pension for the year 2012
The formula used for 2012 will also be used for the years 2013, 2014, and 2015 pension earnings.
Pension Update through 12-31-2010 (apply the Pension Update Formula below to see if it improves your regular pension earned through 12-31-2010)
1) Add up earnings for your best 3 consecutive years between 2005-2010 Total =___________.
2) Divide by 3=____________. This is your best 3 year average out of the 6 possible years to use for this update
3) Multiply 0.85% (.0085) times average annual pay UP TO $45,000 .0085 X $45,000 = $382.50
4) Multiply 1.45 % (.0145) times annual pay OVER $45,000
5) Add line (3) to line (4); then multiply that total times your PBS as of 12/31/2010. Example: [(3) $382.50+ (4) $_________ ] X ________PBS years = Update figure through 12-31-2010
The participants’ existing December 31, 2010 regular pension is calculated including all previous increases already credited to the participant.
It is then compared to the person’s pension applying the 2011 Contract Pension Update formula above. If the formula above provides for a bigger pension amount- the individual is credited with that amount for his pension through 12-31-2010.
That amount is then ADDED to the 2011, 2012, 2013, 2014, 2015 amounts calculated by using applying the career pension earning formulas (first illustration above) or the by using the Guaranteed Pension table multipliers if one has wages close to or below $82,000 annually in any of these years.
This will give someone their up to date pension calculation.
As stated we will be looking to IMPROVE the 2011 Contract current multipliers and/or break points under the 2015 Contract.
If our next Contract were to remain a 4 year contract (2015-2019) and if the Pension Update was to retain the same structure, one would be applying their best three consecutive years between 2009 and 2014 to a newly negotiated Pension Update formula.
The current Pension Update formula is 0.85% (up to $45,000) and the 1.45% (earnings in excess of $45,000) as shown in the example above, using your best 3 consecutive years between 2005-2010. We need improvement.
Some members confuse the Pension Update Formula with the Career Earning Pension Formula. They are totally different formulas used differently as can be seen in the above example.
Some members also confuse the current Pension Update period used (highest consecutive 3 years of earnings of the 6 year period between 2005 and 2010) with the Guaranteed Pension Table period used (highest consecutive 3 years of earnings of the last 10 completed years before retirement).
The Guaranteed Pension Table was NOT the subject of this column and is used only when it increases the amount of an employee’s pension above the amounts provided
by using the Career Earnings Pension Formula and Updates

Piecework negotiations update Friday June 6, 2014

FRIDAY, JUNE 6, 2014 (from Local 201 Website)
• Bargaining Sessions were held Monday, June 2 and Wednesday, June 4 this week.
• Little progress was made – Union and Company Proposals remain far apart.
• Company rejected Union’s simple Proposal # 4A compensation provisions providing for a permanent “Red Circle” for current pieceworkers @ average earnings,
• Company rejected Union’s more complicated Proposal #5 compensation provisions that included a temporary “Red Circle” period for current pieceworkers @ average earnings, extending pension update years to include 2011, 2012, and 2013/2014, retirement options and varying piecework “buyout bonuses” depending on whether someone retires or stays and transitions to piecework.
• Union rejected Company Proposal #5 compensation provisions which provided a retirement incentive program for those ages 60 and over that was less than the regular VRIP bonus, a SERO/SERO 30 program (those age 50-59) with no buyout bonus, and a piecework buyout bonus for those staying less than one half of what the union proposed. There was no red circle period, no pension update or pension improvements, and no piecework “buyout” bonuses for anyone retiring
• Union rejected Company Proposal #6 compensation provisions which provided a retirement incentive program for those ages 60 and over that was the same as the VRIP Bonus, a SERO/SERO 30 program (age 50-59) with no buyout bonus, and a short temporary period for those staying where they would get paid a rate in between their average rate and the new daywork rate. There was no red circle period at average earnings, no pension update or pension improvements, and no piecework “buyout” bonuses for anyone. Members staying would be worse off under this proposal than they were under inadequate previous company proposal
• Union and Company proposals also far apart on Job Security provisions but these have not been discussed much yet due to time being spent on compensation part of an agreement
• Union stated that the Company proposals would not come near to achieving the 50-75 Plant IV retirements they desired. They would be lucky to get a “handful”.
• Union stated the Company proposals would hurt badly the business, schedules, productivity, training and skills retention.
• Union stated our members would never accept such a low compensation offer in the areas of pension (nothing) and buyout bonuses (little to nothing)
• Union requested a serious Company proposal that was in the “ballpark”.
• More negotiation details coming- Tuesday, June 10, 2014 Local 201 Newspaper
• Next Bargaining session is Monday. June 9, 2014.

Piecework Negotiations Update Friday May 30, 2014


Friday, May 30 2014


The Company and Union met again on Thursday, May 29 2014. The Company rejected Local 201’s proposal for a permanent red circle stating that the union’s proposal does not address the need to reduce shop rate, improve competitiveness or allow for the rebalancing of labor with Lynn.


The Union disagreed with the Company’s assessment of our proposal stating the Union proposal would do all of the above, especially if the Company began immediate hiring (following an agreement) of members into Plant IV on daywork rated jobs and brought in large amounts farmed out work. The Union pointed out that acceptance of the Union’s proposed permanent red circle would “greatly simplify” these negotiations. Such acceptance would close out the “compensation” part of the package and allow the parties to concentrate the negotiations on just the job security provisions.


The company continued to reject the permanent red circle and presented an adjusted proposal that increased the incentive payment for pieceworkers (age 60 and over) wishing to retire and for pieceworkers staying and transitioning to day work rate at the end of June 2014. The Company proposal continued to provide SERO and SERO 30 opportunities for most pieceworkers under age 60. The company increased their commitments on the number of immediate Plant IV day work postings from 30 to 50

Piecework negotiations update.

Negotiations resumed yesterday regarding the piecework system.
The Company responded to the important “compensation” part of Local 201’s April 23rd proposal. The Company rejected the Union proposed “permanent red circle” at average earnings for all current pieceworkers. The Company countered with an offer of a low lump sum “buyout” for all those pieceworkers not retiring, while moving them immediately to a day work rate on their same job. For those pieceworkers choosing to retire who are age 6o years or older (with at least 15 years of continuous service) the company offered a retirement bonus much larger than the $18,000 regular Retirement Bonus but much smaller than most pieceworkers’ past VRIP one time payments. For those at least age 55 but under age 60 (with 25 or more years PQS), they offered the SERO (with full benefits). For those under age 55(with at least 30 years PQS), they offered SERO 30 (with full benefits).
The Union recessed for a short period following the Company presentation of this new compensation part of their proposal. When negotiations resumed, the Union rejected the Company’s compensation proposal stating we do not believe it comes near to meeting our members’ needs or the needs of the business in terms of a transition. The Union then said that we would be willing to modify our own last compensation proposal #4 and remove any retirement options but maintain the important “permanent red circle” of pieceworkers at average earnings. The Union told the Company that our proposal not only protects our current pieceworkers’ wages and future pensions, but ensures a smoother transition of skills over time to the new day work positions that will be in Plant IV. The Company said they would review the Union’s modified proposal #4.
Current pieceworkers’ receiving fair and proper compensation is one important part of this negotiation. However, there is also an important job security aspect of this negotiation. If the Union has to be forced to end a beneficial pay stem for future members across the plant, the Union wants some decent job security provisions in any agreement. The Union and Company proposals currently “on the table” both have provisions regarding hiring, farm-in and investment into Plant IV. However, the Company job security commitments in these areas fall far short of what will be acceptable to the Union
Negotiations will resume on Thursday May 29, 2014. We will keep you posted as developments occur. Communications will be on Local 201 web-site also.

Piecework negotiation update May 12, 2014

An unsigned document showed up in Plant IV sometime on Friday, May 9, 2014. IT IS NOT ACCURATE!
It states that “the SERO -30 early retirement option for employees under 55 years old has been removed.”  It is true that the Company, on May 2, 2014, stated that they never offered that option in negotiations and there is a dispute with the Union as to whether it was in fact offered verbally. This matter is being reported on in the Tuesday, May 13, 2014 edition of the Local 201 News. The fact is that SERO-30 for pieceworkers has NOT been removed from the bargaining table.

Piecework negotiations.

Friday, April 25, 2014
Our negotiations with GE in regard to the Plant IV Piecework system will be soon entering their 4th month. Negotiations opened January 27, 2014 with a Company proposal to eliminate the piecework system in Plant IV on July 1, 2014, but contained only an offer of Retirement Bonuses or SERO/SERO 30 for all the current pieceworkers eligible.
The negotiations have been reported on extensively in the last 3 editions of the Local 201 Newspaper and at the last 3 monthly membership meetings. There are also a series of reports up on the Local 201 Website.
The Union completely rejected the Company’s initial proposal and over the last 3 months has presented the Company with 3 proposals to modify the piecework formulas rather than eliminate the entire system.
The Union proposals would have saved the Company significant money and brought the shop rate down. More importantly, the Union’s bargaining committee proposals were aimed at not only trying to defend our current pieceworkers’ wages and benefits but were also focused on attempting to save a modified incentive job paying system for all our members to be able to upgrade to in the future.  
After 7 bargaining sessions and lengthy debate and arguments, the Company unfortunately continues to express zero interest in maintaining any type of piecework system. Despite all our arguments, the Company is convinced that the piecework system is outdated and not conducive to lowering shop rate, lacks management resources to manage it, and is a hindrance to transforming Lynn manufacturing into one flexible manufacturing shop. The Company also repeatedly states the increased productivity of the system does not make up for the increased Company costs the system incurs. The Union disagrees with these assessments and believes a modified system would work if it was managed properly and there was a consistent flow of work in front of members.
The Company has indicated that should we not reach an agreement on eliminating the piecework system and transitioning it to daywork by the 3rd quarter, that layoffs to the street could occur this year and Lynn will not be positioned to have much chance of attracting new engine work over the next 4 years, as our current engine program work scales down.
The Company gave the Union a 2nd proposal on Wednesday, April 23, 2014 that was similar to their first proposal to eliminate piecework and offered little for incumbent pieceworkers, but made some small commitments on hiring, farm-in and investment. Faced with this immovable Company position and this economic and work forecast, the Local 201 union bargaining committee (not enthusiastically) countered the Company proposal with a 4th Union proposal and our first proposal that would eliminate the piecework system.
The essence of the Union’s proposal was that the Company could eliminate the piecework system on July 1, 2014, but that all current incumbent pieceworkers would be “red circled” at average earnings permanently. The Union proposal contained retirement options to be granted to all current pieceworkers eligible that included the $18,000 Bonus or full benefit SERO/SERO 30 options. Also included in the Union’s proposal were provisions for immediate farm-in of work, investment, immediate additional hiring and replacement hiring in Plant IV.
The Company is now reviewing the new Local 201 proposal and the next bargaining session is scheduled for Wednesday April 30, 2014.
The 201 GE Piecework Bargaining Committee is made up of BA Ric Casilli, President Alex Brown, VP Pete Capano, Board Members Mark Workman, Fred Russell, Skip Brown & Jeff Francis; Plant IV Shop Stewards Rick Young, Helen Hughes, Samantha Bansfield, Karl Eddy, Mike McDermott, Wayne Murray, & Pat Ryan; Plant IV member Tony Pagliuca and former Plant IV Board Member Fred Merchant Jr.
    Alex Brown                               Ric Casilli                           Pete Capano
     President                               Business Agent                    Vice- President
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