UPDATE ON 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 Despite all our arguments, the Company is convinced that the piecework system is outdated and not conducive to lowering shop rate, lacks management resources to manage it, and is a hindrance to transforming Lynn manufacturing into one flexible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
IUE-CWA LOCAL 201